Muscat, 27 January 2026 - In a defining step in Oman’s industrial transformation journey, OQ, the global energy investment group, signed two strategic agreements this morning in Muscat with international partners MAK and Deepak, with combined investments exceeding OMR 230 million. The agreements underpin the development of advanced downstream manufacturing projects in Suhar and Salalah, marking a structural shift in the utilisation of domestically produced feedstock. By enabling the conversion of primary resources into higher-value industrial products within Oman, the projects reinforce the Oman’s integration into regional and global manufacturing value chains and accelerate the transition from resource export to value creation at source.

In parallel, SOHAR Port and Freezone signed sub-usufruct and supporting lease agreements for these projects with SOHAR Petrochemicals (a Freezone company) and SOHAR Chemicals to support project implementation. These agreements establish a fully integrated regulatory and operational platform that links port infrastructure, pipeline distribution networks, and manufacturing facilities within a single high-efficiency industrial ecosystem.

OQ signed the first agreement with MAK (Germany) to develop a Purified Terephthalic Acid (PTA) and Polyethylene Terephthalate (PET) production plant in SOHAR Freezone. The project represents an investment of over OMR 192 million and will have an annual production capacity of up to 700,000 tonnes. It will strengthen polymer manufacturing in Oman, leveraging key feedstock (p-Xylene) supplied by OQ.

The second agreement was signed with Deepak (India) for the supply of ammonia over a ten-year renewable period, enabling the company to establish a production facility for sodium nitrite and sodium nitrate in the Salalah Freezone. The project exceeds OMR 38 million in investment and will have a production capacity of around 70,000 tonnes per year, serving specialised pharmaceutical and fertiliser applications. With ammonia supplied by OQ, the project strengthens the link between specialised chemical industries and Oman’s resources while increasing local value added.

Together, the agreements represent a structural shift in Oman’s economic model by building industrial value within the country instead of exporting raw materials. They support the development of an integrated industrial system that brings together infrastructure, manufacturing and supply chains within a unified, high-efficiency operating framework. This direct industrial investment strengthens integrated value chains across speciality petrochemicals, fertilisers, packaging and textiles, as well as related industries. They will enhance industrial integration and create new opportunities for Small and Medium-Sized Enterprises (SMEs) in line with Oman Vision 2040.

The signing of these agreements’ forms part of OQ Group’s initiative to strengthen the localisation of manufacturing. The agreements fall under Ladayn, OQ’s national industrial transformation programme. Ladayn connects locally produced primary inputs with downstream manufacturing industries, enabling the conversion of raw materials into high value finished products. To date, the programme has secured over USD 220 million in investment commitments, with 27 agreements worth more than OMR 85 million and nine projects inaugurated recently with investment of around OMR 40 million.

The agreements were signed on behalf of OQ Group by Eng. Kamil Bakhit Al Shanfari, CEO of OQ Refineries and Petroleum Industries (OQ RPI), and Eng. Khalid Khalfan Al Asmi, CEO of OQ Base Industries (OQBI). They were signed on behalf of the partner companies by Hojat Mohammadi Imir, CEO and Shareholder of MAK Germany, and Ajay Mehta, Chairman of Deepak. The agreements were also signed by Emile Hoogsteden, CEO of SOHAR Port and Freezone, and Eng. Raid Al Rubaiey, CEO of SOHAR Freezone.

On this occasion, Ashraf Hamed Al Mamari, Group CEO of OQ, said: “These two agreements reflect the national role played by OQ and its subsidiaries in redirecting locally produced primary resources into value-added downstream industries within Oman, supported by an integrated operating model. They are part of a clear localisation pathway that positions industrial investment as a tool to develop more connected and sustainable national production capabilities. This approach builds integrated value chains by connecting production, manufacturing and logistics. It will reinforce Oman’s industrial base and strengthen its position in regional and global industrial supply chains.”

Emile Hoogsteden, CEO of SOHAR Port and Freezone, said: “The significance of this project lies in the strategic decision to move into an operating environment capable of supporting complex industrial operations with efficiency and long-term stability. SOHAR Port and Freezone provide an integrated operating ecosystem that brings together infrastructure, logistics services and industrial manufacturing within a single framework, which is a critical factor in the relocation decisions of global industrial projects.”

Hojat Mohammadi Imir, CEO and Shareholder of MAK Germany, said: “This project is a major milestone for MAK Group (Germany). Choosing SOHAR Port and Freezone for a facility with a capacity of 1.5 million tonnes of PTA and PET polymers reflects our confidence in Oman’s industrial environment. It also reflects our trust in SOHAR Port and Freezone to provide advanced infrastructure, strong operational efficiency and long-term stability. This reinforces the area’s readiness to host global industrial projects and supports our international expansion plans.”

Ajay Mehta, Chairman of Deepak, added: “Our partnership with OQ offers a strategic opportunity to invest in a differentiated manufacturing venture in Oman. With robust infrastructure and reliable raw material supply, we are confident this project will help grow specialised manufacturing and support key sectors including pharmaceuticals and advanced fertilisers, in alignment with Oman’s economic objectives.”

The Suhar project is expected to create around 700 direct jobs, alongside the transfer of advanced industrial expertise and technologies. The Salalah project is expected to generate around 150 direct jobs, supporting employment and skills development in the industrial sector.

Both projects are anchored in an integrated industrial model that links production, logistics infrastructure and supply chains within a single operating ecosystem. This approach reflects structural integration between the port, the freezone and manufacturing facilities. It improves material flow and strengthens Oman’s industrial connectivity.

These agreements highlight OQ’s pivotal role in shaping Oman’s advanced manufacturing landscape through the systematic integration of feedstock resources, industrial production, and enabling infrastructure under the Ladayn Polymer Programme framework. The Programme reinforces public–private collaboration in building national industrial value chains, while leveraging Suhar’s integrated industrial ecosystem, freezone platform, and logistics capabilities to ensure cost-competitive production and secure, reliable supply.

This trajectory affirms Oman’s readiness to transition from a supplier of primary raw materials to a diversified industrial hub capable of hosting globally competitive manufacturing projects, while strengthening its industrial presence at both regional and international levels.