Muscat – OQ Refineries and Petrochemical Industries, a subsidiary of OQ, the global integrated energy group, signed nine investment agreements worth a total of approximately US$88mn to establish industrial projects in Ladayn Polymer Park in Suhar Industrial City. These agreements are part of OQ’s efforts to support economic diversification policies and attract investment, in line with the objectives of Oman Vision 2040. Additionally, these aim to boost investment in industries that meet the needs of local markets and exports.
Aiming to maximise the added value of petrochemical projects and local businesses, the agreements focus on promoting Omani goods and services or those provided by locally registered suppliers. Such efforts are crucial for job creation and skill development, especially in the plastics industry, and these pave the way for new opportunities for small and medium enterprises (SMEs).
The agreements are a testament to OQ’s dedication to boosting in-country value (ICV), a central element of the group’s investment strategy aimed at enriching local markets, supporting domestic products and strengthening SMEs. Integral to this strategy is the localisation of select goods, contributing an estimated US$46mn annually to ICV.
Integral to this strategy is the localisation of select goods, contributing an estimated US$46mn annually to the ICV. Furthermore, these collective investments are poised to create around 290 direct job opportunities, along with an additional 600 indirect jobs, underscoring the significant economic impact of OQ’s initiatives.
Furthermore, these collective investments are poised to create around 290 direct job opportunities, along with an additional 600 indirect jobs, underscoring the significant economic impact of OQ’s initiatives.
Strategically located in Suhar Industrial City, the Ladayn Polymer Park is a key project aimed at propelling Oman towards self-sufficiency in plastic products and carving out a niche for the country in the international plastics market. The project is set to invigorate the local industrial sector by introducing new, added-value products, thereby fostering the growth of similar industries. The project’s focus on localising specialised plastic industries and integrating cutting-edge technology is designed to enhance Oman’s value proposition. Additionally, it presents incentives for investors, creating an attractive investment environment for both regional and global investors.
The agreements were signed by Hilal bin Ali al Kharusi, Chief Executive of Commercial and Downstream at OQ, and representatives of the following companies:
1 – A US$35mn agreement with Mohammad Riaz Sons Plastic Company for advanced sustainable plastic food packaging components, inked by Zain Mohammad Riaz, the company’s managing director.
2 – An agreement to establish the Napco National project with an investment starting at about US$15mn and increasing to US$48mn, aimed at manufacturing packaging bags for petrochemical products, plastic compounds and packaging. The agreement was signed on behalf of the company by Issam Chaaya, Vice-President for Chemicals and Petrochemicals.
3 – An agreement with MAK Germany GmBH to establish a project worth US$11mn to produce specialised plastic compounds, signed by Mohammad Amiri, Executive Director.
4 – An agreement with Madayn Plastic Company SPC for US$8mn to produce shrink wrap tapes, packaging bags for petrochemical products, food packaging and frozen food bags. The agreement was signed by Mohammed al Loughani, Chairman of the company.
5 – A US$6mn agreement with Jil Technology for innovative 3D manufacturing, signed by Ghada al Yousef, Founder and CEO.
6 – An agreement with Jcoplastics for the establishment of a project to produce plastic waste containers, boxes and pallets, with an investment of about US$6mn in the first phase, signed by Antonio Foresti, the company’s CEO.
7 – An agreement with Gemini Corporation for plastic recycling and sustainability to manufacture plastic products with an investment of US$3mn. The agreement was signed by Surendra Patawari, Chairman of the Board of Directors of the company.
8 – An agreement with National Plastic Lumber Company for a project to produce various products from wood plastic composite used in construction, with an investment of US$1.5mn. The agreement was signed by Omar al Siyabi, the company’s CEO.
9 – An agreement worth US$1.5mn was signed with Al Farida Industry & Trade to produce colour masterbatch, signed by Hussein Mohammed, the company’s CEO.
In a related development, Public Establishment for Industrial Estates – Madayn – also signed seven land usufruct agreements for duration extendable to 33 years, at reduced prices with investors.
In a related development, Public Establishment for Industrial Estates – Madayn – also signed seven land usufruct agreements for duration extendable to 33 years, at reduced prices with investors. These agreements were signed by Dawood bin Salim al Hadabi, CEO of Madayn. Additionally, Omar Mahmood al Mahrizi, CEO of Suhar Free Zone, signed an agreement with Gemini Corporation aimed at recycling plastic.