United Solar Secures $850 Million for Oman Polysilicon Plant: Implications for Renewable Energy Investment Opportunities
Muscat: United Solar Holding has successfully secured over $850 million in debt financing to finalize funding for its $1.6 billion state-of-the-art polysilicon manufacturing facility in Oman. This development positions the Sultanate as a pivotal player in the global solar supply chain.
The financing package includes $480 million in term debt from the International Finance Corporation (IFC) and partner banks, along with more than $400 million in term debt and working capital from local commercial banks. The Oman Investment Authority’s Future Fund Oman is now United Solar’s largest shareholder, contributing approximately $260 million.
The facility, operated by United Solar Polysilicon (FZC) SPC, will have a capacity of 100,000 metric tonnes and is expected to commence production in the first quarter of 2026. Once operational, it will be the largest and only polysilicon manufacturing facility in the Middle East, with the capability to support approximately 40 gigawatts of solar module production annually.
All polysilicon produced at this facility will be fully traceable and compliant with leading international standards, including those mandated by the US Foreign Entity of Concern (FEOC) requirements, thereby ensuring access to global markets.
Mulham al Jarf, Deputy President for Investment at the OIA, remarked that the successful financial closure reflects strong international confidence in both Oman and this project. “This achievement underscores the commitment of the Omani government and the OIA as the largest shareholder, alongside United Solar Polysilicon’s ability to deliver a world-class project that meets global energy transition needs," he stated.
He emphasized that the project will create jobs for Omanis, support small and medium-sized enterprises (SMEs), and lay the foundation for additional upstream and downstream renewable energy investments. "It also highlights the OIA’s commitment to diversifying funding through partnerships with leading institutions like the IFC, which will facilitate growth in solar cell and module production, amplifying its long-term economic impact," Al Jarf added.
Sam Zhang, Founder and Chairman of United Solar, described this milestone as crucial for the industry. “With the backing of the OIA and IFC, we are building the necessary infrastructure to enhance the global solar supply chain, ensuring manufacturers have reliable access to high-quality, traceable polysilicon that meets rigorous international standards,” he noted.
Binyam Girogis, Group CFO and Board Director, pointed out that over 80% of the capital has originated from Omani institutions, as well as regional and local banks, along with the IFC. “This diverse participation validates our investment approach and underscores Oman’s attractiveness for long-term industrial investments,” he stated.
Ashruf Megahed, IFC Regional Industry Head for Manufacturing, Agribusiness, and Services in the Middle East and Central Asia, emphasized that the project will enhance Oman’s export capacity and industrial base. “By strengthening our industrial capabilities, this project will significantly increase polysilicon exports, contribute to global energy production growth, and support Oman’s long-term economic diversification and industrial transformation,” he articulated.
In an exclusive interview with the Observer, Megahed highlighted the IFC’s role in establishing the project’s bankability for international investors. "The involvement of the IFC lends a stamp of approval to financing and operations, ensuring compliance with environmental and social performance standards," he explained.
“By engaging with local banks, IFC helped amplify the financial commitment for this project by a factor of eight, resulting in a total financing package exceeding $850 million,” he added, noting that the IFC also played a vital role in designing a green framework essential for integrating traceable polysilicon into global supply chains.
According to the IFC, global renewable capacity additions must surpass 1,100 gigawatts annually—more than double current levels—underscoring the strategic significance of projects like United Solar’s facility in diversifying and strengthening clean energy supply chains worldwide.
Special Analysis by Omanet | Navigate Oman’s Market
The recent securing of over $850 million in debt financing by United Solar for its polysilicon manufacturing facility signals a transformational shift in Oman’s role within the global solar supply chain. This presents significant opportunities for local businesses, particularly SMEs, to engage in upstream and downstream activities, while also creating a risk for competitors in neighboring regions. Investors should act promptly to capitalize on the burgeoning renewable energy sector as Oman positions itself for long-term economic diversification and industrial growth.
