03-05-2025
Oman emerges as regional hub for renewable energy equipment manufacturing
MUSCAT: Oman is making strategic strides in positioning itself as a regional hub for renewable energy equipment manufacturing, aligning with the goals of Oman Vision 2040 to build a diversified, technology-driven, and sustainable economy.
Dr Saleh bin Saeed Masan, Under-Secretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry, highlighted the importance of industries such as solar panels, wind turbines, energy storage systems, and green hydrogen electrolyzers in the Sultanate of Oman's 2040 Industrial Strategy. These sectors are seen as essential to Oman's transformation toward innovation-led and low-carbon industrial development.
He noted that the government is implementing specific initiatives to establish integrated industrial complexes for renewable energy, backed by dedicated programs and strong inter-agency cooperation. Among the key developments is a renewable energy industrial complex being set up in the Sohar Free Zone, with support from the ministry and other stakeholders. This initiative is already attracting high-value precision industries.
Engineer Khalid bin Salim al Qasabi, Director General of Industry at the ministry, said this transformation strengthens Oman's global standing in renewable energy manufacturing. He revealed that the Sohar Free Zone has attracted three major solar energy projects worth over one billion Omani rials.
One of the landmark projects is being developed by United Solar, which is building the Middle East's first polysilicon production facility. The factory, with an investment of approximately $1.35 billion, was 80% complete as of April. Polysilicon is the key raw material used in solar cell manufacturing, and the plant will have an annual output capacity of 100,000 metric tons, significantly reducing the need for imported raw materials and enhancing value-added manufacturing.
In November 2024, Chinese firm Jitai Solar signed an agreement to lease land in Sohar Free Zone for a high-tech solar panel factory with a capacity of 5 gigawatts per year. The panels will primarily serve markets in the Gulf and Africa.
JA Solar, a global leader in solar cell manufacturing, also announced plans to establish a facility in Sohar with a production capacity exceeding 40 gigawatts annually. The RO 217 million (US$564 million) investment will benefit from Sohar's robust infrastructure and the strategic location of the Port of Sohar, offering direct access to Europe, Asia, the GCC, and Africa.
Engineer Jassim bin Saif al Jadidi, Technical Director at the Ministry, described these developments as a qualitative leap for Oman's industrial sector. He said the creation of a fully integrated solar energy manufacturing complex—from raw materials to finished panels—marks an unprecedented level of industrial integration in the region.
This strategic clustering of renewable energy industries is expected to reduce production costs by up to 20%, stabilize supply chains amid global disruptions, and transform Oman into a reliable exporter of clean energy technologies. The projects will also boost the industrial sector's contribution to GDP and generate over 3,000 direct and indirect jobs.
Additionally, they are set to attract complementary investments in related fields such as pure silicon, glass, transformers, and batteries, further strengthening Oman's green supply chain capabilities.
With the completion of these projects, Oman is poised to become a regional center for green manufacturing and a global supplier of renewable energy technologies. — ONA
