Arab News: Oman’s Sohar Industrial City attracted more than 214 million Omani rials ($557 million) in investments during the first half of 2026, reinforcing the sultanate’s manufacturing expansion and economic diversification drive.
The signed agreements comprised 22 new contracts, 12 expansion agreements, four substitution agreements, and one renewal agreement, covering projects spanning more than 1.1 million sq. meters, according to the Oman News Agency.
Oman is positioning manufacturing and industrial development as key pillars of its economic diversification strategy under Oman Vision 2040, with the industrial sector viewed as a means of expanding non-oil gross domestic product, developing local value chains, and attracting domestic and foreign investment.
Sohar Industrial City, operated by the Public Establishment for Industrial Estates, or Madayn, has become a major hub for this effort, with projects spanning manufacturing, petrochemicals, metals, plastics, and other industries.
Abdullah Ahmed Al-Mayasi, director general of Sohar Industrial City, said the city’s cumulative investment volume has surpassed 2.3 billion rials.
“The total leased area has touched 16,285,914 sq. meters, out of the city’s 19,856,507 sq. meters of developed area, while the overall area of Suhar Industrial City, including both developed and undeveloped land, stands at 30,487,399 sq. meters,” Al-Mayasi said.
He added that the total number of projects operating in the city has increased to 497, employing approximately 12,671 workers.
Ceramics project expands exports
Al-Mayasi highlighted an investment agreement signed with Fujian Mansheng Industrial Investment Co. to establish a 25 million-rial ceramic manufacturing plant as one of the city’s landmark projects during the first half of the year.
The project will be developed on a 241,000-sq.-meter site and feature three production lines. The facility will initially produce 60,000 sq. meters per day, with capacity expected to increase to 90,000 sq. meters per day once fully operational, according to Al-Mayasi.
According to project representatives, 25 percent of production will be supplied to the domestic market, while the remaining 75 percent will be exported to Gulf Cooperation Council countries and neighboring markets.
The plant is expected to generate 500 to 600 jobs, including more than 150 positions for Omani nationals, while supporting knowledge transfer and the development of Oman’s industrial sector.
Renewable project gains momentum
Al-Mayasi also highlighted the 93-megawatt renewable energy project under development at Sohar Industrial City as a strategic milestone in Oman’s clean-energy transition and its efforts to advance the sustainability and economic diversification goals of Oman Vision 2040.
“Developed through a strategic partnership, the project aims to operate and manage the city’s clean energy distribution network efficiently while establishing an integrated billing governance framework and delivering energy services to investors in line with best international practices,” he said.
He added that the project will provide direct value to investors by supplying clean energy at competitive prices, reducing electricity costs during solar generation hours while ensuring uninterrupted power supply during nighttime and other non-solar periods, ONA reported.
The project site has been allocated in Phase 7 of Sohar Industrial City and will include integrated infrastructure for renewable-energy generation and distribution.
The initiative is also expected to reduce carbon dioxide emissions and natural gas consumption, supporting Oman’s carbon-reduction and energy-security objectives, ONA said.
The news agency added that the project will enhance the competitiveness of factories operating in Sohar Industrial City by helping them meet international environmental standards and emissions requirements, strengthening their export potential and supporting sustainable industrial growth.
Infrastructure expansion continues
Madayn is currently implementing several development projects at Sohar Industrial City and plans to execute additional strategic initiatives, including a comprehensive infrastructure rehabilitation and service-modernization program, integrated service facilities and buildings to support the management and operation of the industrial city, and consultancy services for the Integrated Aluminium Economic Cluster, aimed at strengthening industrial value chains.
The industrial-estates operator will also continue efforts to attract investment to Ladayn Polymer Park, which has recorded strong growth in recent years amid rising domestic and regional demand for plastic products.
https://www.arabnews.com/node/2653980/business-economy
