Pacts signed to set up $88mn industrial projects in Sohar

Business Sunday 10/December/2023 17:55 PM
Pacts signed to set up $88mn industrial projects in Sohar

Muscat: OQ Refineries and Petrochemical Industries, a subsidiary of OQ Group, signed nine investment agreements to the tune of $88 million to establish industrial projects in the Ladayn Polymer Park in Sohar Industrial City.

These agreements are part of OQ’s efforts to support economic diversification policies and attract investments, in line with the objectives of Oman Vision 2040. Additionally, they aim to boost investment in industries that meet the needs of local markets and exports.

Aiming to maximise the value addition of petrochemical projects and local businesses, the agreements focus on promoting Omani goods and services or those provided by locally registered suppliers. Such efforts are crucial for job creation and skill development, especially in the plastics industry, and they pave the way for new opportunities for small and medium enterprises (SMEs).

Boosting in-country value (ICV) is a central element of the OQ group’s investment strategy aimed at enriching local markets, supporting domestic products, and strengthening small and medium enterprises (SMEs). Integral to this strategy is the localisation of select goods, contributing an estimated $46 million annually to the ICV. Furthermore, these collective investments are poised to create around 290 direct job opportunities, along with an additional 600 indirect job opportunities.

This initiative comes in line with Oman Investment Authority’s (OIA) vision in enriching ICV through empowering the private sector, localising local industries, strengthening the local economy, and developing and stimulating small and medium enterprises.

Strategically located in Sohar Industrial City, the Ladayn Polymer Park is a key project aimed at propelling Oman towards self-sufficiency in plastic products and carving out a niche for the country in the international plastics market. This project is set to invigorate the local industrial sector by introducing new, added-value products, thereby fostering the growth of similar industries. The project's focus on localising specialised plastic industries and integrating cutting-edge technology is designed to enhance Oman's value proposition. Additionally, it presents incentives for investors, creating an attractive investment environment for both regional and global investors.

In a related development, The Public Establishment for Industrial Estates (Madayn) also signed seven land usufruct (land lease) agreements with a duration of 33 years (extendable), at reduced prices with investors.

On this occasion, Hilal Ali Al Kharusi, Chief Executive of Commercial and Downstream at OQ, said: “These agreements reflect OQ's commitment to enhancing the Sultanate of Oman’s position in the development of the manufacturing industries, supporting SMEs, particularly those involved in the industrial sector, to establish national industries in various fields. This effort aims to achieve self-sufficiency in products and positions Oman as a major exporter of these products.”

“In addition to supporting the manufacturing industries that will be established in the Ladayn Polymer Park, OQ will purchase manufactured products such as plastic pallets and packing bags for polymer granules. OQ is also committed to supporting plastic recycling plants, utilising the latest technologies that contribute to reducing negative use and environmental impact,” he added.

Dawood Salim Al Hadabi, CEO of Madayn, emphasised that, "The Lidayn Polymer Park in Sohar Industrial City is a pivotal project designed to maximise in-country value by localising specialised plastic industries and leveraging advanced technology, offering enticing opportunities for investors."

Khalid Said Al Shuaib, Head of the National Programme for Investment and Exports Development 'Nazdaher', discussed the programme's role in this important project, which supports the manufacturing sector in the downstream petrochemical industry. The programme collaborates with OQ and the Public Authority for Special Economic Zones and Free Zones (Opaz), as well as industrial areas, to strategically attract investors through a comprehensive marketing plan encompassing multiple countries. This synergistic collaboration has led to the formation of a joint task force among the three entities, which has notably succeeded in drawing a number of committed investors, as demonstrated by the signing of these agreements on Sunday. - ONA