Oman’s Green Energy Manufacturing Boost in Salalah: What It Means for Investors and Entrepreneurs
MUSCAT, AUG 25 — Salalah Free Zone (SFZ), located adjacent to the Port of Salalah on Oman’s southern coast, is emerging as a prime destination for low-carbon downstream industrial investments. This comes as three major green hydrogen projects enter early development in Dhofar Governorate, signaling significant potential for the region starting from 2030 onwards.
Top officials from SFZ highlighted the strategic advantages of Salalah, including its geostrategic location, infrastructure, and logistics, which collectively support the free zone’s role in Oman’s green energy transition. Ahmed Tabook, Commercial Director of SFZ, emphasized that the zone provides essential land, infrastructure, and export access needed to support large-scale renewable energy projects.
During a recent webinar hosted by Energy Connects, Tabook, alongside Senior Business Development Specialist Leena al Kathiri and Port of Salalah’s Chief Commercial Officer Ahmed Aubad Qatan, discussed the free zone’s opportunities as an investment hub for petrochemicals, metals, and logistics.
Salalah’s green hydrogen potential is driven by a strong government strategy, long-term support, and international partnerships — notably with the Netherlands — aimed at expanding green hydrogen trade and bunkering solutions. The Port of Salalah already features pipelines and liquid jetties, supporting comprehensive upstream, midstream, and downstream activities.
“We are actively seeking to attract companies involved in the renewable energy supply chain, including solar panel production, wind turbine components, electrolysers, and hydrogen-related equipment, to build a complete green energy manufacturing ecosystem within the free zone,” Tabook stated.
Currently, three gigawatt-scale projects — led by consortiums SalalaH2, EDF / J-Power / Yamna, and Actis / Fortescue — are set to produce green ammonia and green hydrogen starting from 2030. Alongside this, significant solar and wind energy capacity will come online in Dhofar, providing clean energy to industries within the free zone.
Downstream opportunities include green steel and green aluminium production, initially combining hydrogen with natural gas before transitioning to full hydrogen use. Another critical area is green bunkering; as the shipping industry moves away from traditional fuels, alternative green fuels like green ammonia and green methanol will be in high demand. Pipelines from SFZ will connect directly to the Port of Salalah, establishing the zone as a vital hub for green fuel supply.
Strategically located between Rotterdam and Singapore — two of the world’s largest bunkering centers — Salalah is positioned to become a new player in the global green hydrogen value chain. This is particularly important given that steelmaking and shipping fuels are among the most challenging sectors to decarbonize. With infrastructure for green hydrogen, green steel, and green bunkering, Salalah Free Zone is poised to become a center for future industries.
Moreover, SFZ boasts robust liquid logistics infrastructure, including a dedicated corridor linking the Port of Salalah to the free zone for liquid cargo. This 4.5-kilometer pipeline corridor currently handles approximately 4.5 million tonnes annually of liquid petrochemical products such as LPG, methanol, and ammonia, and will support future green hydrogen exports.
These developments collectively underscore Salalah Free Zone’s vital role in advancing Oman’s green energy ambitions and attracting sustainable industrial investments.
تحليل خاص من عمانت | تصفح سوق عُمان
The development of green hydrogen projects in Salalah Free Zone positions Oman as a key global player in low-carbon industrialization, leveraging its strategic location and existing infrastructure for green energy exports and supply chains. For businesses and investors, this creates exciting opportunities in renewable energy manufacturing, green steel and aluminum production, and emerging green bunkering markets, while underscoring the importance of aligning with Oman’s sustainability roadmap to capture long-term growth in decarbonizing hard-to-abate industries.
Arabic 
English 
Persian