SOHAR Port and Freezone Secures $220M Green Financing: What This Means for Business Growth in Oman
MUSCAT: SOHAR Port and Freezone has entered into a significant financing agreement valued at $220 million with Oman Arab Bank and another prominent Omani bank. This partnership aims to expedite sustainable infrastructure development in the southern region of the Port. The agreement was finalized during the CEO Summit organized by Oman Arab Bank, under the patronage of Eng. Salim bin Nasser al Aufi, Minister of Energy and Minerals.
The funding will support key strategic initiatives, including the Marsa LNG development and Phase 2 of the Freezone’s expansion. This investment is a crucial step in enhancing SOHAR Port and Freezone’s integrated logistics and industrial ecosystem, boosting its competitiveness as a vital gateway for global trade, and reinforcing its role in Oman’s sustainable economic growth.
Oman Arab Bank will act as the Facility Agent, Security Agent, and Principal Financier for the agreement, utilizing its expertise to ensure the financing structure aligns with national priorities outlined in Oman Vision 2040. This collaboration also emphasizes a commitment to environmentally sustainable financing, promoting the use of green financial solutions for low-carbon infrastructure development.
A cornerstone of this expansion is the Marsa LNG project, a joint venture between TotalEnergies and OQ. This initiative aims to become the region’s first large-scale LNG bunkering and export hub, covering 44.5 hectares and targeting an annual output of approximately one million tonnes of LNG. The project will be powered entirely by a dedicated 300 MW solar facility, ensuring zero-carbon operations and facilitating Oman’s transition to clean energy.
Ahmed al Hosni, Vice President of Finance at SOHAR Port and Freezone, called the agreement a major catalyst for national development. He stated, “This partnership is a game-changing step for SOHAR Port and Freezone, amplifying the national drive for sustainable expansion and directly advancing Oman’s economic vision. It enhances our ability to accelerate essential infrastructure projects, attract high-value foreign direct investment, and generate broader opportunities within the national ecosystem.”
Sulaiman al Harthy, CEO of Oman Arab Bank, emphasized the bank’s role in facilitating transformative projects. “We take pride in supporting this landmark transaction, which aligns with Oman’s strategic vision for sustainable growth and economic diversification. Leading this financing facility reaffirms our commitment to ESG-aligned development and the creation of lasting national value. This initiative will also stimulate the job market and create new employment opportunities for Omani talent,” he added.
Special Analysis by Omanet | Navigate Oman’s Market
The $220 million financing agreement for SOHAR Port and Freezone signals significant opportunities for businesses in Oman, particularly in the realms of sustainable infrastructure and logistics. As the Marsa LNG project enhances the region’s competitiveness as a global trade gateway, smart investors and entrepreneurs should prioritize ESG-focused projects that align with Oman Vision 2040, as the demand for low-carbon solutions is set to accelerate. However, risks related to implementation and market volatility remain, necessitating a strategic approach to mitigate potential setbacks.
