Tuesday 27 / January / 2026
Muscat: OQ Group signed two strategic agreements with global companies "M.A.K" and "DEEPAK," with a total value exceeding OMR230 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 OMR192 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 OMR38 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 specialised 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 localise downstream industries and as an extension of the "Ladayn" programme—a national industrial transformation initiative launched by OQ to link locally produced primary inputs to manufacturing sectors. To date, the programme has successfully attracted investment commitments exceeding $220 million, with 27 agreements signed totalling over OMR85 million, and 9 projects recently inaugurated with investments of approximately OMR40 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 localisation path that utilises 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."
