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Oman Launches First Wind Turbine Manufacturing Project at Duqm SEZ: What This Means for Investors and Entrepreneurs

Oman Launches First Wind Turbine Manufacturing Project at Duqm SEZ: What This Means for Investors and Entrepreneurs

MUSCAT, SEPTEMBER 21 — CID Gulf LLC, an Omani-Moroccan engineering consultancy, has secured a significant contract to provide design consultancy services for Oman’s first wind turbine manufacturing project at the Duqm Special Economic Zone (SEZ). The project’s client is Mawarid Turbines, a subsidiary of the OQ Group, Oman’s integrated energy conglomerate.

CID Gulf, based in Muscat, is a joint venture between Khonji Engineering Consultancy—a part of Mohamed & Ahmed Alkhonji LLC (MAK), a prominent Omani technology-focused holding company—and Conseil, Ingénierie et Développement (CID), a Moroccan engineering consultancy active across Africa and the Middle East.

In a statement released on Friday, CID Gulf emphasized the project’s importance, describing it as a “cornerstone” for Oman’s transition to clean energy, local industrialisation, and sustainable development. The consultancy expressed pride in contributing to this national initiative alongside key government and private sector partners.

This contract accelerates the implementation of Mawarid Turbines, a landmark effort to localize wind turbine manufacturing to meet both domestic and regional demand. Oman anticipates requiring thousands of wind turbines over the next two decades to support its energy transition, which includes grid-connected clean power and an ambitious green hydrogen sector.

The first phase of the manufacturing facility, covering 550,000 square meters within the SEZ, involves an investment of approximately RO 70 million. It is expected to produce around 1,100 MW of wind turbine capacity annually, focusing on two models: 6.25 MW and 9.6 MW turbines. The technology will be licensed from Shanghai Electric Group, a leading Chinese clean energy equipment manufacturer.

Early recipients of the turbines, including components such as nacelle hubs that house generators, will be wind-based Independent Power Projects (IPPs) planned for Al Duqm, Mahout, and Sadah. These IPPs will be developed by international developers partnered with local consortiums through competitive tenders managed by Nama Power & Water Procurement (Nama PWP). OQ Alternative Energy (OQAE), a subsidiary of OQ Group and national champion for renewable energy, will hold an equity stake of up to 25% in these projects. This stake arrangement applies to all future renewable energy projects procured by Nama PWP, beginning with the Ibri III Solar PV project—a 500 MW installation in Al Dhahirah Governorate. For the wind projects, OQAE’s investment—in the form of locally manufactured turbines and possibly other contributions—will translate into an equivalent equity stake in the project companies.

Phase 1 of Mawarid Turbines is projected to be operational by late 2026 or early 2027.


Special Analysis by Omanet | Navigate Oman’s Market

The establishment of Oman’s first wind turbine manufacturing facility at Duqm SEZ marks a strategic leap towards localizing renewable energy production, positioning Oman as a key player in the Gulf’s clean energy transition. This creates significant opportunities for businesses and investors to engage in the growing green hydrogen and wind energy markets, while also mitigating risks related to energy import dependence. Smart entrepreneurs should now focus on partnerships, technology transfer, and capacity building to leverage this momentum in Oman’s expanding clean energy ecosystem.

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