$550 Million PTA-PET Complex at SOHAR Port: What It Means for Investors and Businesses in Oman
MUSCAT: SOHAR Port and Freezone has signed two significant agreements with subsidiaries of MAK Germany, in partnership with OQ Refineries and Petroleum Industries Company, to establish an integrated industrial complex for producing Purified Terephthalic Acid (PTA) and Polyethylene Terephthalate (PET). This initiative further solidifies SOHAR’s status as a globally competitive center for petrochemical and downstream manufacturing industries.
The agreements involve Sohar Petrochemicals, a Freezone entity, and Sohar International Minerachem, focusing on developing a fully integrated PTA and PET platform across SOHAR Port and SOHAR Freezone. The project, valued at approximately $550 million, will cover 11.9 hectares within SOHAR Port and 53.6 hectares in the SOHAR Freezone.
This investment follows MAK Germany’s strategic decision to relocate its existing PTA and PET production facility from the Port of Rotterdam to Oman. The move reflects strong confidence in Oman’s industrial environment and SOHAR Port and Freezone’s capability to support large-scale, complex industrial operations with long-term efficiency and stability.
The project operates on a dual-location model: the SOHAR Freezone will house the core PTA and PET production units, while SOHAR Port will manage bulk storage, feedstock handling, and pipeline connections. This design aims to ensure smooth material flow, maintain high safety standards, and optimize operational efficiency over the long term.
The development is underpinned by multiple coordinated agreements, including a Sub-Usufruct Agreement at SOHAR Port, a Land Lease Agreement at SOHAR Freezone, and a Product Supply Agreement with OQ, guaranteeing long-term feedstock availability. Together, these agreements establish a comprehensive industrial platform integrating port infrastructure, logistics, and downstream manufacturing.
Hojat Mohammadi Imir, CEO and shareholder of MAK Germany, called the project a major strategic milestone for the group. “Relocating our PTA and PET production to SOHAR Port and Freezone demonstrates our confidence in Oman’s industrial ecosystem and SOHAR as a premier destination for complex petrochemical investments,” he said. He added that the facility will have a combined production capacity of 1.5 million tonnes of PTA and PET polymers, supported by an integrated logistics and infrastructure system aligned with the company’s global expansion goals.
Emile Hoogsteden, CEO of SOHAR Port, emphasized the importance of enabling environments for sophisticated industrial activity. “SOHAR Port and Freezone combines infrastructure, logistics, and manufacturing within a unified ecosystem,” he stated. “This integration is increasingly critical for global investors looking to relocate or expand.”
Raid al Rubaiey, CEO of SOHAR Freezone and Deputy CEO of SOHAR Port, said the land lease agreement highlights the Freezone’s strategic role in advancing downstream industrial development. “This project aligns with Oman Vision 2040 by promoting industrial diversification, enhancing in-country value, and accelerating export-driven growth,” he noted, adding that it underscores the Freezone’s vital position within SOHAR’s integrated industrial framework.
Feedstock supply will be secured through a long-term agreement with OQ, which will provide Paraxylene (PX) as the primary input for PTA production. Additional raw materials, including Monoethylene Glycol (MEG) and Acetic Acid, will be imported via SOHAR Port and transported through a dedicated pipeline network connected to Advario’s storage facilities. This pipeline logistics approach will significantly reduce truck traffic, boost health, safety, security, and environmental standards, and support continuous, reliable operations.
Ashraf Hamed al Mamari, Group CEO of OQ, said the agreements highlight OQ’s national role in channeling local resources into higher-value downstream industries. “This integrated model strengthens value chains by linking production, manufacturing, and logistics, reinforcing Oman’s industrial base and its standing in regional and global supply chains,” he concluded.
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The landmark $550 million PTA and PET industrial complex in SOHAR Port and Freezone positions Oman as a global petrochemical hub, significantly boosting its industrial diversification and export potential aligned with Oman Vision 2040. For businesses, this presents strategic opportunities in downstream manufacturing and logistics sectors, while investors should consider the long-term stability and integration benefits of Oman’s evolving industrial ecosystem. Smart entrepreneurs must focus on leveraging Oman’s integrated infrastructure and strong feedstock supply agreements to capture value from expanding regional and global supply chains.
