Salalah Free Zone signs $29mn pact for ammonium sulphate fertiliser production plant

Business Sunday 12/July/2026 15:04 PM
By: Times News Service
Salalah Free Zone signs $29mn pact for ammonium sulphate fertiliser production plant

Muscat: Salalah Free Zone (SFZ) has signed a sub-usufruct agreement with Majan Petrochemical Industry (SFZ) to establish an ammonium sulphate fertiliser production plant with an investment value exceeding OMR11 million ($29 million) on a land area of 43,669.63 square metres.

The project represents another milestone in strengthening SFZ’s position as a leading destination for value-added industrial investments while supporting the growth of Oman’s chemical and downstream manufacturing sectors.

The signing ceremony was attended by Qais Mohammed Al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones (Opaz).

The agreement was signed on behalf of the Salalah Free Zone by Dr. Ali Tabouk, Chief Executive Officer of Salalah Free Zone, while Said Mousa Al Junaibi, Partner and Chairman of the Company's Board of Directors, signed on behalf of the company.

The project aligns with SFZ’s strategy to attract high-value manufacturing industries that contribute to economic diversification, strengthen industrial value chains, and enhance the competitiveness of Oman’s industrial sector. It will capitalise on Salalah Free Zone’s strategic location on major international shipping routes, its direct integration with the Port of Salalah, world-class infrastructure, and investor-friendly business environment.

The facility will manufacture ammonium sulfate fertiliser, one of the world's most widely used agricultural fertilisers, recognised for its effectiveness in improving soil fertility and increasing crop productivity. The plant is expected to meet the growing regional and international demand for fertiliser products while reinforcing the presence of Omani industrial products in global markets.

The investment will support the objectives of Oman Vision 2040 by expanding value-added downstream manufacturing, increasing non-oil exports through the Port of Salalah, and leveraging SFZ's strategic location to efficiently serve key markets across Asia, Africa, and the GCC. The project will further strengthen Oman’s position as a regional hub for industrial manufacturing and export-oriented industries.

Beyond its direct industrial impact, the project is expected to generate significant economic value by creating skilled employment opportunities and supporting Omani SMEs through procurement, logistics, engineering, maintenance, construction, and other industrial services. It will also introduce advanced fertiliser manufacturing technologies, enhance local technical capabilities, and promote sustainable industrial practices through efficient resource utilisation and environmentally responsible production.

Commenting on the agreement, Dr. Ali Tabook, Chief Executive Officer of Salalah Free Zone, said "This project represents a strategic addition to Salalah Free Zone's growing chemical manufacturing portfolio and reflects our commitment to attracting investments that build integrated industrial value chains rather than standalone production facilities. Our focus is on developing a comprehensive industrial ecosystem where investors benefit from the synergy between logistics infrastructure, industrial services, and seamless access to international markets, ultimately enhancing the global competitiveness of their businesses."

He added, "The global fertiliser and chemical industries continue to experience sustained growth, driven by increasing demand for agricultural products. We see this investment as an important opportunity to strengthen Salalah Free Zone's contribution to this vital sector by leveraging Salalah's competitive advantages as a global logistics hub connecting manufacturers with key international markets efficiently and reliably, while supporting Oman's economic diversification agenda and the expansion of non-oil exports."

The signing of this agreement reflects Salalah Free Zone's continued success in attracting high-quality industrial investments that contribute to sustainable economic development and reinforce its position as one of the region's leading destinations for export-oriented manufacturing through an integrated business environment designed to support long-term investor growth.