United Solar's $1.8 Billion Polysilicon Plant in Sohar Marks Oman's Largest Renewable Energy Investment

In a landmark development for Oman's renewable energy sector, the Oman Investment Authority (OIA) has announced the launch of the United Solar Polysilicon Plant in Sohar Freezone, representing an investment of RO 700 million (approximately USD 1.8 billion). The project, unveiled on February 3, 2026, stands as one of the largest industrial investments in the renewable energy sector in the region.

A Strategic Manufacturing Hub

The United Solar Polysilicon facility represents a significant milestone in Oman's efforts to diversify its economy beyond hydrocarbons. As a subsidiary of United Solar Holding, the company has chosen Oman as the location for its largest facility outside China, signaling strong international confidence in the Sultanate's industrial infrastructure and investment climate.

According to the official announcement from the Oman Investment Authority, the plant is expected to provide 1,012 direct jobs, contributing substantially to Oman's employment goals under Vision 2040. The project will also position Oman within the global solar energy supply chain, creating opportunities for technology transfer and skills development in advanced manufacturing.

International Financing Partnership

The project's financial structure demonstrates the depth of international support for Oman's renewable energy ambitions. A joint financing agreement was concluded between United Solar Polysilicon, the International Finance Corporation (IFC), and several regional and local banks, reflecting the multi-stakeholder approach that has become characteristic of Oman's major infrastructure investments.

The involvement of the IFC, the private sector arm of the World Bank Group, adds significant credibility to the project and may pave the way for additional foreign investment in Oman's clean energy sector.

Part of a Broader Investment Wave

The United Solar plant is one of four major projects launched by OIA during the first month of the 11th Five-Year Plan, with combined investments exceeding RO 935 million. These projects collectively are expected to create more than 1,850 job opportunities, reaffirming the Authority's strategic presence in the manufacturing sector as a primary driver for achieving the objectives of Oman Vision 2040.

The announcement comes during an exceptionally active period for foreign investment in Oman. In early February 2026, the Sultanate hosted multiple high-profile business events, including the OMNEX 2026 Oman-Türkiye Business Forum and the Suhar Investment Forum 2026, which attracted over 750 participants from more than 30 countries.

Growing FDI Confidence

The timing of this investment aligns with positive foreign direct investment trends in Oman. According to data released by the National Centre for Statistics and Information on February 4, 2026, FDI stock reached USD 78.78 billion by the end of Q2 2025, representing 12.8% growth compared to 2024 levels of USD 69.68 billion.

The United Kingdom emerged as the top source of FDI with close to RO 16 billion at the end of September 2025, followed by the United States with approximately RO 8.2 billion—posting the strongest growth at 24.7% year-on-year. This growing American interest in Oman's energy transition projects and technology-driven sectors creates a favorable context for large-scale renewable energy investments like the United Solar facility.

Strategic Location Advantages

The choice of Sohar Freezone as the location for this mega-project is strategically significant. Over the past two years, Sohar Port and Freezone has attracted investments exceeding USD 4 billion, reflecting strong international investor confidence in Oman's logistics and economic advantages.

During the Suhar Investment Forum 2026 held on February 4-5, officials highlighted that companies representing around 50 nationalities currently operate in Suhar, reflecting growing international confidence in the governorate's investment climate. The forum itself presented more than 50 investment opportunities valued at approximately RO 300 million, with five agreements worth nearly RO 12 million signed during the two-day event.

Technology Transfer and Skills Development

Beyond the immediate economic impact, the United Solar Polysilicon Plant represents a significant opportunity for technology transfer and the development of specialized manufacturing capabilities within Oman. The production of polysilicon—a critical raw material for solar panels—requires advanced technical expertise and sophisticated manufacturing processes.

The 1,012 direct jobs created by the project will likely require extensive training programs, potentially in partnership with international experts, creating a skilled workforce that can support future renewable energy and advanced manufacturing projects in Oman.

Alignment with Vision 2040

The project directly supports several key pillars of Oman Vision 2040, including economic diversification, job creation for Omani nationals, and the development of a sustainable, knowledge-based economy. By establishing a manufacturing presence in the solar energy supply chain, Oman is positioning itself as more than just an energy consumer—it's becoming an active participant in the global transition to renewable energy.

The renewable energy sector has been identified as a strategic priority in Oman's economic development plans, with the government setting ambitious targets for clean energy generation and seeking to leverage the country's abundant solar resources for both domestic use and export-oriented industries.

Regional Competitiveness

This investment also enhances Oman's competitiveness within the GCC region, where neighboring countries are also making substantial investments in renewable energy and clean technology manufacturing. The scale of the United Solar project—at USD 1.8 billion—places it among the most significant renewable energy manufacturing investments in the Gulf region.

The project's success could attract additional foreign manufacturers in the solar energy value chain, potentially creating an integrated renewable energy industrial cluster in Sohar that includes everything from raw materials production to panel assembly and installation services.

Looking Ahead

As the United Solar Polysilicon Plant moves from announcement to construction and eventually to operation, it will serve as a critical test case for Oman's ability to attract and successfully execute large-scale foreign industrial investments in advanced technology sectors.

The participation of international financial institutions, the scale of job creation, and the strategic importance of the technology involved all suggest that this project will receive close attention from both regional and international investors evaluating opportunities in Oman's evolving economy.

With foreign direct investment growing at double-digit rates and major international companies choosing Oman for significant manufacturing facilities, the United Solar project represents both a milestone achievement and a promising indicator of future investment trends in the Sultanate.

Sources

• Oman News Agency - OIA Launches Four Major Projects
• Madhyamam - Oman Investment Authority Projects
• Muscat Daily - UK, US and Kuwait Top FDI Sources
• Invest Oman - 2026 Investment Landscape
• Muscat Daily - Suhar Investment Forum Agreements