Agreements
Signed to Develop Downstream Industries in Sohar and Salalah

Muscat,
27 Jan 2026 (ONA) — OQ Group signed two strategic agreements with global
companies “M.A.K” and “DEEPAK,” with a total value
exceeding RO 230 million. The agreements aim to develop advanced downstream
manufacturing projects in Sohar and Salalah, redirecting locally produced raw
materials toward high-value-added industries within the country. This
initiative is part of a national trajectory to enhance the Sultanate of Oman’s
position in regional and global industrial value chains.

In
support of these projects, SOHAR Port and Freezone signed sub-usufruct and
lease agreements with Sohar Petrochemicals Company and Sohar International Urea
and Chemical Industries Company. These include land usufruct rights at Sohar
Port and land leasing at Sohar Freezone, establishing an integrated regulatory
and operational framework that links port facilities, pipeline networks, and
manufacturing units into a single high-efficiency system.

OQ
concluded the first agreement with the German company “M.A.K” to
establish a plant for the production of Purified Terephthalic Acid (PTA) and
Polyethylene Terephthalate (PET) in the Sohar Freezone. With an estimated
investment of over RO 192 million and a production capacity of 700,000 tons per
year, the project aims to bolster the manufacturing of polymer products in Oman
using “para-xylene” supplied by OQ.

The
second agreement was signed with the Indian company “DEEPAK” for the
supply of ammonia for a ten-year renewable period. This enables the
establishment of a plant to produce sodium nitrite and sodium nitrate in the
Salalah Freezone, with an investment exceeding RO 38 million. The facility will
have a production capacity of approximately 70,000 tons per year, targeting the
pharmaceutical and specialized fertilizer industries, while relying on ammonia
supplied by OQ.

These
agreements represent a structural shift in the Omani economic model, focusing
on anchoring industrial value within national borders rather than exporting raw
materials. This investment is expected to create integrated value chains
covering specialized petrochemicals, fertilizers, packaging, and textiles. The
Sohar project is anticipated to provide approximately 700 direct jobs, while
the Salalah project will create about 150 direct jobs.

The
signing comes as part of OQ Group’s initiative to localize downstream
industries and as an extension of the “Ladayn” program—a national industrial
transformation initiative launched by OQ to link locally produced primary
inputs to manufacturing sectors. To date, the program has successfully
attracted investment commitments exceeding USD 220 million, with 27 agreements
signed totaling over RO 85 million, and 9 projects recently inaugurated with
investments of approximately RO 40 million.

The
agreements were signed on behalf of OQ Group by Eng. Kamil Bakheet Al Shanfari,
CEO of OQ Refineries and Petroleum Industries, and Eng. Khalid Khalfan Al Asmi,
CEO of OQ Base Industries.

Ashraf
Hamad Al Mamari, CEO of OQ Group, stated: “These two agreements reflect
the national role of the Group in redirecting locally produced raw materials
into downstream industries with integrated operational structures within Oman.
This promotes a clear localization path that utilizes industrial investment to
build more interconnected and sustainable national production
capabilities.”

Emile
Hoogsteden, CEO of SOHAR Port, noted: “The importance of this project lies
in its strategic decision to transition to an operational environment capable
of accommodating complex industrial processes with efficiency and long-term
stability.”

Eng.
Raid Al Rubaie, CEO of Sohar Freezone and Deputy CEO of Sohar Port, added:
“The land lease agreement enhances Sohar Freezone’s position as a major
hub for strategic downstream industries with sustainable economic impact,
supporting the objectives of Oman Vision 2040.”

—Ends/AG