Oman’s Strategy to Boost Silica Sand Exports: What It Means for Investors and Businesses
MUSCAT, APRIL 19 — Omani exports of silica sand, a vital raw material for global solar panel manufacturing and electronics industries, are expected to rise following a significant logistics agreement aimed at enhancing overseas shipments of this industrial mineral.
The Earth Sciences Consultancy Centre (ESCC) has recently signed a logistics services agreement with Asyad Terminals Duqm LLC, a subsidiary of the Asyad Group, to facilitate the export of silica sand via the Port of Duqm.
According to ESCC, the agreement seeks to streamline the export process for silica sand extracted from the Mahout area by ESCC, thereby reinforcing supply chains, optimizing natural resource use, and supporting the growth of Oman’s industrial and logistics sectors.
Dr. Mohammed bin Hilal al Kindi, ESCC’s CEO, stated: “This agreement with Asyad at the Port of Duqm provides crucial support to ease silica sand exports and improve supply chain efficiency. It marks a significant milestone for ESCC in advancing our export operations.”
In September last year, Minerals Development Oman (MDO), a state-owned mining investment firm, announced the commencement of production at its Silica Sand Project located in the Wilayat of Mahout within exploration Block F51. ESCC is collaborating with MDO to develop silica resources over a 2,156 km² concession, initially focusing on a 5 km² development zone. The project targets an annual output of 100,000 tonnes of high-purity silica, with estimated total reserves around 47 million tonnes.
The Ministry of Energy and Minerals, alongside MDO and ESCC, is also keen on fostering local value addition from this strategic mineral. Among the proposals is establishing a silica-based industrial cluster at the Special Economic Zone at Duqm (SEZAD). This initiative aligns with Oman’s broader goal to expand industries such as glass, ferrosilicon, and solar panel manufacturing, supporting the national clean energy transition.
Leveraging Oman’s rich high-purity silica reserves, the proposed cluster aims to boost industrial diversification and enhance domestic value addition. Producing glass and ferrosilicon locally would convert raw minerals into higher-value materials for construction, automotive, and metallurgical sectors. Meanwhile, solar panel manufacturing would bolster Oman’s growing renewable energy agenda and deepen integration into global clean-tech supply chains.
Together, these developments are poised to stimulate downstream manufacturing ecosystems, attract foreign investment, generate skilled jobs, increase non-oil exports, and strengthen Oman’s position as a regional hub for low-carbon, mineral-based industrial growth.
Special Analysis by Omanet | Navigate Oman’s Market
The new logistics agreement to boost Oman’s silica sand exports via the Port of Duqm positions Oman as a strategic player in the global solar panel and electronics supply chains. This creates significant opportunities for industrial diversification and value addition, especially through the proposed silica-based industrial cluster in SEZAD, aligning with Oman’s clean energy transition goals. Smart investors should consider ventures in downstream manufacturing and renewable energy sectors, leveraging Oman’s rich mineral resources and government-backed industrial expansion initiatives.
