MUSCAT : The report praised Oman’s rapid progress in localising high-quality industries based on advanced technologies and strengthening its domestic production capabilities.

UNIDO noted that despite being a relatively new entrant into advanced manufacturing, Oman has made a significant leap in building industrial value chains linked to high-tech sectors. In particular, the Sultanate has established a promising industrial base in photovoltaic cell-related industries, supported by quality foreign investments, effective government procurement policies and an attractive business environment for modern technologies.

The report highlighted several major industrial projects currently under development, led by the United Solar Polysilicon project in the Sohar Free Zone. One of the largest of its kind in the region, the project aims to produce 100,000 tonnes of polysilicon annually to meet growing regional demand for solar energy solutions and strengthen Oman’s position in global supply chains.

UNIDO also pointed to Oman’s natural and structural advantages, including the availability of high-quality silica sand, strong year-round solar and wind resources, and a strategic location along key international shipping routes. These factors, combined with government incentives such as tax exemptions and 100 per cent foreign ownership, have positioned the Sultanate as a competitive destination for advanced industrial investment.

Among recent developments, Shida has launched construction of its first solar panel factory spanning 11,250 square metres, while an agreement has been signed with Chinese firm JA Solar to establish a major manufacturing facility with a capacity of 6 gigawatts for solar cells and 3 gigawatts for panels. The project represents an investment of US$564 million and is primarily targeted at Gulf and African markets.

In Duqm, the Resources Turbine Company project was announced to manufacture wind turbines with investments estimated at US$181.8 million. In the green hydrogen sector, Oman is preparing to establish an electrolyser assembly plant in cooperation with Chinese company Sungrow, further strengthening its standing in high-tech manufacturing across the Arab world.

Commenting on the progress, Engineer Khalid bin Salim Al-Qasabi, Director General of Industry at the Ministry of Commerce, Industry and Investment Promotion, said the achievements reflect the adoption of proactive industrial policies aimed at attracting advanced, high-value industries. He noted that the ministry has streamlined investor procedures, enhanced the readiness of free and economic zones, and introduced a comprehensive incentive package, including flexible regulations, tax and customs exemptions, and simplified licensing.

Engineer Jassim bin Saif Al-Jadidi, Technical Director at the Office of the Undersecretary of the ministry, said integrated industrial complexes are beginning to take shape, particularly in Sohar Free Zone, where polysilicon plants are located alongside solar cell and panel factories to create a complete value chain.

He added that accelerating global investment flows show international companies increasingly view Oman as an ideal industrial hub, supported by direct government backing, investor incentives and highly prepared industrial sites. Parallel initiatives are also under way to develop local suppliers, boosting local content and enabling Omani products to compete regionally and globally.

Al-Jadidi said these successive industrial achievements are reshaping Oman’s advanced manufacturing landscape and reinforcing its position as a promising regional centre.