Muscat – Salalah Free Zone has signed a usufruct agreement with Majan Petrochemical Industries Company to establish an ammonium sulphate fertiliser plant with an investment exceeding RO11mn (US$29mn), marking a significant addition to Oman’s downstream chemicals sector and supporting the country’s drive to expand value-added manufacturing and non-oil exports.

The project will be developed on a 43,669sqm site and forms part of the free zone’s strategy to attract value-added manufacturing investments and strengthen integrated industrial value chains.

The factory will produce ammonium sulphate fertiliser, a widely used agricultural input that improves soil fertility and crop yields. The output is expected to meet growing demand in regional and international markets while supporting the expansion of Omani industrial exports.

Salalah Free Zone said the investment aligns with the objectives of Oman Vision 2040 by promoting value-added manufacturing, increasing non-oil exports through the Port of Salalah, and leveraging the free zone’s strategic location to serve markets across Asia, Africa and the GCC.

The project is also expected to create employment opportunities and generate business for small and medium enterprises involved in transport, logistics, engineering, maintenance, contracting and other industrial services. It is also expected to support technology transfer and the adoption of modern production practices in the fertiliser industry.

Dr Ali bin Mohammed Tabouk, CEO of Salalah Free Zone, said the investment strengthens the zone’s growing chemicals cluster. “This project represents a strategic addition to the chemical industries portfolio in the Salalah Free Zone and reflects our focus on attracting investments that build integrated industrial value chains rather than simply establishing production facilities,” Tabouk said.

He added that the free zone offers investors an integrated ecosystem combining logistics infrastructure, business services and direct access to international markets, enhancing the competitiveness of industrial projects.

Tabouk said demand for chemical and fertiliser products continues to grow alongside rising global agricultural production, creating opportunities for Oman to expand its manufacturing base and increase non-oil exports.

The agreement was signed in the presence of H E Qais bin Mohammed Al Yousef, Chairman, Public Authority for Special Economic Zones and Free Zones (OPAZ). It was signed by Dr Ali bin Mohammed Tabouk, CEO, Salalah Free Zone, and Saeed bin Musa bin Noor Al Junaibi, Partner and Chairman, Majan Petrochemical Industries Company.

Why this lead is stronger: It tells readers not just what was signed, but why it matters—linking the project to Oman’s industrial diversification and export strategy, which is the real business story.