RO 11 Million Fertilizer Plant in Salalah: What This Investment Means for the Future of Agriculture in Oman
MUSCAT: The Salalah Free Zone has entered into a usufruct agreement with Majan Petrochemical Industries Company to set up an ammonium sulphate fertilizer plant, entailing an investment of over RO 11 million (approximately $29 million). The facility will occupy a space of 43,669.63 square meters and aims to enhance the zone’s portfolio in chemical and downstream industries.
This initiative is part of Salalah Free Zone’s strategy to attract value-added industries, broaden industrial value chains, and bolster the manufacturing sector’s contribution to Oman’s economic diversification efforts. The new plant will produce ammonium sulphate, a key fertilizer known for enhancing soil fertility and boosting crop yields.
The anticipated output of the facility is expected to cater to both regional and international markets, thereby increasing non-oil exports via the Port of Salalah and elevating the visibility of Omani industrial products on the global stage. The project’s strategic location along major global trade routes, direct connectivity to the Port of Salalah, and access to markets across Asia, Africa, and the Gulf Cooperation Council will further enhance its impact.
Additionally, the project is poised to create opportunities for small and medium-sized enterprises in sectors such as transport, logistics, engineering, maintenance, and contracting. It also aims to facilitate knowledge transfer and promote the adoption of modern fertilizer manufacturing technologies, improving production efficiency and resource utilization in alignment with industrial and environmental standards.
Dr. Ali bin Mohammed Tabouk, CEO of Salalah Free Zone, described the project as a significant addition to the zone’s chemical industries portfolio. “This initiative underscores our commitment to attracting investments that foster integrated industrial value chains rather than merely establishing production facilities,” he stated.
Tabouk emphasized that the zone is cultivating an industrial environment conducive to investors, providing integrated logistics infrastructure and services while ensuring access to target markets. He noted that the rising global demand for fertilizers, driven by growth in agricultural production, presents opportunities for the Salalah Free Zone to expand its contributions to the sector.
The agreement was formalized by Tabouk and Saeed bin Musa bin Noor al Junaibi, partner and Chairman of Majan Petrochemical Industries Company, during a signing ceremony attended by Qais bin Mohammed al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones.
Special Analysis by Omanet | Navigate Oman’s Market
The establishment of an ammonium sulphate fertiliser plant at the Salalah Free Zone presents significant opportunities for businesses in Oman, particularly in the chemical and downstream industries. This initiative is likely to bolster non-oil exports and stimulate growth within SMEs across various sectors such as transport and logistics. Smart investors should consider tapping into emerging farming technologies and sustainable practices, as the demand for effective fertilisers aligns with global agricultural growth trends.
