Muscat: OQ Refineries and Petrochemical Industries, a subsidiary of OQ Group, has recently signed nine investment agreements worth $88 million. These agreements are aimed at establishing industrial projects in the Ladayn Polymer Park located in Sohar Industrial City.
The main objective behind these agreements is to support economic diversification policies and attract investments, aligning with the goals of Oman Vision 2040. Additionally, the focus is on boosting investment in industries that cater to the needs of local markets and exports.
To maximize the value addition of petrochemical projects and local businesses, these agreements prioritize the promotion of Omani goods and services, as well as those provided by locally registered suppliers. This approach is crucial for job creation and skill development, particularly in the plastics industry, and it opens up new opportunities for small and medium enterprises (SMEs).
The OQ group's investment strategy revolves around enhancing in-country value (ICV), which involves enriching local markets, supporting domestic products, and strengthening SMEs. As part of this strategy, select goods will be localized, contributing an estimated $46 million annually to the ICV. Moreover, these collective investments are expected to generate approximately 290 direct job opportunities and an additional 600 indirect job opportunities.
This initiative is in line with the vision of the Oman Investment Authority (OIA) to enhance ICV by empowering the private sector, localizing industries, strengthening the local economy, and fostering the growth of SMEs.
Situated strategically in Sohar Industrial City, the Ladayn Polymer Park serves as a crucial initiative to propel Oman towards self-reliance in plastic products and establish a prominent presence for the country in the global plastics market. This project holds the potential to invigorate the local industrial sector by introducing innovative and value-added products, thereby fostering the growth of similar industries. By focusing on localizing specialized plastic industries and integrating cutting-edge technology, the project aims to enhance Oman's value proposition. Moreover, it offers attractive incentives to investors, creating a favorable investment environment for both regional and global stakeholders.
In a related development, The Public Establishment for Industrial Estates (Madayn) has also entered into seven land usufruct agreements with investors, which have a duration of 33 years and can be extended. These agreements have been offered at reduced prices.
Hilal Ali Al Kharusi, Chief Executive of Commercial and Downstream at OQ, expressed his views on this occasion, stating, "These agreements exemplify OQ's dedication to bolstering Oman's position in the manufacturing industries and supporting small and medium-sized enterprises, particularly those involved in the industrial sector, to establish national industries across various domains. This endeavor aims to achieve self-sufficiency in products and position Oman as a significant exporter of these goods."
Dawood Salim Al Hadabi, CEO of Madayn, highlighted the significance of the Lidayn Polymer Park in Sohar Industrial City as a crucial project aimed at maximizing the value within the country by localizing specialized plastic industries and utilizing advanced technology. This project presents attractive opportunities for potential investors.
Khalid Said Al Shuaib, Head of the National Programme for Investment and Exports Development 'Nazdaher', discussed the program's role in supporting the manufacturing sector of the downstream petrochemical industry. The program works in collaboration with OQ, the Public Authority for Special Economic Zones and Free Zones (Opaz), as well as industrial areas, to strategically attract investors through a comprehensive marketing plan that spans across multiple countries. This collaborative effort has resulted in the establishment of a joint task force among these three entities, which has successfully attracted committed investors, as evidenced by the signing of these agreements on Sunday.
