IFC Supports Oman’s Entry into Global Solar Supply Chains: What This Means for Investors and Entrepreneurs
MUSCAT: The International Finance Corporation (IFC), the private sector arm of the World Bank Group, is reinforcing Oman’s status as a competitive hub for high-tech industrial investment through its support of United Solar Polysilicon’s (USP) large-scale manufacturing project in Sohar. This initiative represents one of the most significant industrial financings in Oman in nearly twenty years.
This project marks IFC’s renewed commitment to Oman’s industrial sector, focusing on renewable energy supply chains and export-driven manufacturing. In an exclusive interview with the Observer, Wendy Werner, World Bank Group Country Manager for Oman, emphasized that the USP project aligns closely with Oman’s diversification and competitiveness goals.
“The USP project is a crucial part of Oman’s diversification strategy,” Werner stated. “It also makes a significant contribution to the renewable energy supply chain regionally and globally, indicating both strong developmental impact and commercial importance.”
The recent signing of financing agreements formalized IFC’s lead role in a major debt package supporting the 100,000-tonne polysilicon plant at Sohar Port and Freezone. Beyond this formal agreement, the broader importance lies in the message it sends to international lenders and institutional investors about Oman’s industrial readiness.
In addition to IFC’s investment of approximately $250 million, the project attracted a diverse group of international and local lenders. Werner highlighted that IFC’s rigorous due diligence and standards were pivotal in encouraging this capital influx. “Many lenders found confidence in IFC’s involvement, which was crucial in mobilizing such a substantial financing and equity package,” she noted. IFC’s participation often serves as a decisive factor in establishing project bankability.
Polysilicon is a vital upstream material in solar photovoltaic manufacturing, with global production predominantly concentrated outside China. IFC views the Sohar facility as strategically important not only for Oman but also for enhancing the resilience and diversification of global supply chains amid increasing geopolitical and trade uncertainties.
Alongside its financing role, IFC is providing USP with advisory and benchmarking support to ensure the plant meets global best practices. “Our close partnership with USP helps achieve high efficiency and strong environmental and social outcomes,” Werner explained. “This collaboration from the outset has driven significant positive impacts.”
The project is also expected to generate around 3,000 direct and indirect jobs, supporting Oman’s goal of creating quality employment alongside economic diversification, Werner added.
She further noted that IFC’s involvement sends a powerful signal to global investors evaluating Oman as a destination for advanced manufacturing. “It clearly demonstrates what Oman can accomplish,” she said, citing the project’s rapid execution, deployment of cutting-edge technology, and the robust infrastructure offered by Sohar Freezone. IFC has observed other major industrial and technology investors viewing USP as a benchmark for what is achievable in Oman.
Looking ahead, IFC’s broader measure of success will be Oman’s ability to maintain growth momentum across the renewable and energy value chains. “Oman is already capable of attracting large-scale projects,” Werner said. “The renewable and energy supply sectors hold significant potential here, in line with government strategy and implementation.”
For United Solar, this project represents a strategic investment in positioning Oman as a globally competitive industrial base. Binyam Giorgis, Group CFO of United Solar Holding, explained that Sohar was chosen after evaluating multiple global locations. “We selected Sohar due to its port access, the efficiency of Invest Oman and government processes, and the availability of reliable energy,” he stated.
He described the plant as a critical asset for enhancing supply chain resilience. “Outside China, polysilicon capacity is very limited,” Giorgis said. “This facility will boost the resilience and diversification of the solar supply chain, making it a key asset both in the Middle East and worldwide.”
United Solar has raised approximately $1.6 billion for the project to date, including over $900 million through recent debt financing led by IFC and local banks. “This financing strongly endorses Oman, uniting global and local institutions to back a complex, high-tech industrial venture,” Giorgis concluded.
This landmark project not only underscores Oman’s industrial potential but also positions the Sultanate as a pivotal player in the global renewable energy supply chain.
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Oman’s emergence as a high-tech industrial hub, bolstered by IFC’s backing of the $1.6 billion United Solar Polysilicon project, signals a transformative opportunity for diversification beyond traditional sectors. Businesses and investors should view this as a strategic gateway into the renewable energy supply chain, benefiting from Sohar’s infrastructure and government support. Smart investors must consider the long-term growth potential in advanced manufacturing and sustainability-driven industries, capitalizing on Oman’s enhanced industrial credibility and global supply chain relevance.
