Oman inks $564mn deal with Chinese firm to set up solar plant
Muscat – Oman has signed a multi-million dollar agreement with China's JA Solar to establish a large-scale solar cell and panel manufacturing facility in the second phase of Sohar Freezone as part of efforts to boost renewable energy and diversify the economy.
The RO217.3mn (US$564mn) project will cover 32.5 hectares and is expected to begin operations in the first quarter of 2026. The plant will have annual production capacity of up to 6GW of solar cells and 3GW of solar modules, positioning Oman as a key player in the clean energy value chain across the region.
JA Solar signed agreements to this effect with Invest Oman, Sohar Port and Freezone, and Majis Industrial Services on Monday during the closing ceremony of Advantage Oman Forum, the sultanate's first international investment forum.
Khalid bin Salim al Qassabi, Director General of Industry at Ministry of Commerce, Industry and Investment Promotion, said the project supports Oman Industrial Strategy 2040. 'The renewable energy sector is a priority for us due to its potential to create new industrial opportunities, increase contribution of industry to GDP, and diversify the energy mix,' he said. 'This project reflects our vision for developing future industries and promoting value-added investments.'
Qassabi added that Oman aims to become a regional hub for renewable and green industries, with the new facility expected to attract investments.
Fan Jingchao, General Manager at JA Solar Oman, said, 'Our facility marks a significant advancement in the solar PV supply chain, integrating all key components from polysilicon to modules. 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 panels that enhance accessibility and attract global investment, while expanding our presence in key markets.'
On the occasion, Mohammed al Shizawi, Acting CEO of Sohar Freezone, said, 'In response to high investor demand and with the first phase nearing full occupancy, the ongoing expansion of the freezone is now underway to advance local solar manufacturing, reduce carbon emissions and raise regional sustainability standards. The project will drive industrial diversification, strengthen local supply chains and unlock new downstream investment opportunities critical to Oman's economic growth.'
The agreement with JA Solar is seen as a milestone in Oman's efforts to attract foreign direct investment and strengthen its clean energy manufacturing sector.
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