UNIDO Report Praises Oman’s Rapid Progress in Advanced Industrial Localization

Vienna, The Gulf OObserver: The Sultanate of Oman has received widespread international recognition for its rapid progress in localizing high-quality industries based on advanced technologies and strengthening its production capabilities, according to the United Nations Industrial Development Organization (UNIDO) Industrial Development Report for 2026.

The report classified Oman among the emerging countries globally in the industrial sector, citing its notable achievements in building industrial value chains linked to advanced technology industries, despite the country’s relatively recent entry into this field.

According to the report, Oman has succeeded in establishing a promising industrial base in photovoltaic cell-related industries by attracting quality investments, implementing stimulating government procurement policies, and creating an attractive business environment for modern technologies.

UNIDO highlighted several major industrial projects currently under development, most notably the United Solar Polysilicon project in the Sohar Free Zone. The project, considered one of the most significant industrial ventures in the region, aims to produce 100,000 tonnes of polysilicon annually to meet growing regional demand for solar energy solutions and to strengthen Oman’s position within global supply chains.

The report also underscored Oman’s competitive advantages, including the availability of high-quality silica sand raw materials, strong solar radiation and year-round wind movement, as well as its strategic geographic location along one of the world’s most important international maritime routes.

In addition, the government offers a range of investment incentives, including tax exemptions and 100 percent foreign ownership, enhancing Oman’s competitiveness as a destination for the localization of advanced industries.

Among recent developments, Sheida Industries has launched construction of its first solar panel factory, covering an area of 11,250 square metres. The company has also signed an agreement with China’s JA Solar to establish a manufacturing facility with a capacity of 6 gigawatts for solar cells and 3 gigawatts for panels, with total investments amounting to US$564 million, primarily targeting Gulf and African markets.

The report also noted the Turbine Resources Company project in Duqm, which aims to manufacture wind turbines with investments estimated at US$181.8 million. In the field of green hydrogen technology, Oman is preparing to establish an electrolyzer assembly plant in cooperation with China’s Sungrow Power, further strengthening the Sultanate’s position in high-tech manufacturing within the Arab region.

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 were the result of stimulating industrial policies and systematic initiatives designed to attract quality, technology-driven industries.

He explained that the ministry has worked to facilitate investor procedures, enhance the readiness of free and economic zones, and empower the industrial sector through a comprehensive package of incentives. These include a flexible regulatory framework, tax incentives, customs exemptions, simplified licensing procedures, and directing investments toward economic zones equipped with integrated infrastructure capable of accommodating advanced industrial projects.

Meanwhile, Engineer Jassim bin Saif Al Jadidi, Technical Director at the Office of the Undersecretary of the Ministry of Commerce, Industry and Investment Promotion, said industrial projects specializing in solar cell and panel manufacturing have begun to take shape within integrated industrial complexes, particularly in the Sohar Free Zone. He noted that polysilicon plants are being developed alongside solar cell and panel factories, supported by complementary projects that complete the value chain and establish an integrated regional manufacturing ecosystem.

Al Jadidi added that accelerating global investment flows in this sector have positioned Oman as an ideal hub for international companies, benefiting from direct government support, investor incentives, and the availability of highly prepared industrial sites.

He further said the ministry is simultaneously implementing initiatives to develop local suppliers, enabling them to become integral parts of industrial supply chains, thereby enhancing local content and strengthening the competitiveness of national products in regional and international markets.

According to Al Jadidi, Oman’s successive industrial achievements are reshaping the advanced manufacturing landscape and consolidating the country’s position as a promising regional industrial hub, in line with the objectives of the Industrial Strategy 2040 and Oman Vision 2040.