Oman Signs $565 Million Agreement to Establish Major Solar Manufacturing Plant in SOHAR Freezone

Muscat, The Gulf Observer: Oman has made a significant stride in its renewable energy ambitions with the signing of a $565 million agreement to establish a cutting-edge solar manufacturing facility in SOHAR Freezone.

Announced during the Advantage Oman Forum in Muscat, the landmark project, facilitated by Invest Oman, reflects the Sultanate’s firm commitment to advancing clean energy initiatives and promoting industrial diversification under Oman Vision 2040.

The agreement was signed between JA Solar Energy — ranked among the world’s top four producers of high-efficiency solar cells and modules — and leading Omani entities, including Invest Oman, SOHAR Port and Freezone, and Majis Industrial Services.

Scheduled to commence operations in 2025, the facility will span 32.8 hectares in the second phase of the SOHAR Freezone. It is expected to deliver an annual production capacity of 6 gigawatts (GW) of solar cells and 3 GW of solar modules, catering to major markets across Europe, the United States, and the broader region.

The project is the result of coordinated efforts between several government bodies, including the Public Authority for Special Economic Zones and Free Zones (OPAZ), the Authority for Public Services Regulation, Oman Electricity Transmission Company (OETC), NAMA Supply, and Majis Industrial Services, with Invest Oman serving as a key enabler throughout the process.

Speaking on the occasion, Ibtisam Al Farooji, Undersecretary of the Ministry of Commerce, Industry, and Investment Promotion for Investment Promotion, said:
“The signing of these landmark agreements underscores Oman’s commitment to fostering a competitive and sustainable investment environment. This project aligns with Oman Vision 2040 by enhancing renewable energy capabilities, creating economic value, and driving innovation in clean energy technologies. Through Invest Oman’s collaborative efforts, the Sultanate continues to position itself as a global hub for strategic, sustainable investments.”

She further highlighted Invest Oman’s pivotal role, noting that the plant’s advanced technology and scale would significantly contribute to strengthening Oman’s renewable energy sector and supporting global sustainability efforts.

Mohammed Al Shizawi, Acting CEO of SOHAR Freezone, emphasized the broader significance of the project, stating:
“The expansion of SOHAR Freezone highlights our strong appeal to investors and our key role in driving economic growth. With its strategic advantages and advanced infrastructure, the freezone is the perfect foundation for innovative projects like this one. By localizing solar panel production, we reduce our carbon footprint and set a new sustainability benchmark, while strengthening the renewable energy cluster and downstream industries.”

Victor Yang, President of JA Solar’s Investment and Financing Center, hailed the strategic advantages of the plant’s location, remarking:
“Our facility marks a significant advancement in the solar PV supply chain. The strategic location within SOHAR Freezone offers essential logistics and positions us in a rapidly growing renewable energy hub. By utilising cutting-edge technologies, we aim to produce high-quality, affordable solar cells and panels that enhance accessibility and attract global investment, while expanding our presence in key markets.”

Echoing this sentiment, Fan Jingchao, General Manager of JA Solar OM (FZC) SPC, said:
“This facility integrates all key components from polysilicon to modules, and will accelerate the clean energy transition. Our investment strengthens Oman’s renewable infrastructure and contributes meaningfully to global sustainability goals.”

With Phase 1 of SOHAR Freezone already 85% leased, the development of Phase 2 — where the new facility will be located — is accelerating to meet rising demand across its 675-hectare area. The establishment of the JA Solar manufacturing plant is expected to further enhance SOHAR Freezone’s reputation as a strategic hub for sustainable industrial development and global trade.

The solar manufacturing project stands poised to play a transformative role in advancing Oman’s clean energy transition, supporting industrial diversification, and reinforcing the Sultanate’s emergence as a regional leader in renewable energy technologies.