Oman Takes Major Step into Solar Supply Chain with $1.6 B Polysilicon Plant at Sohar

Oman officially entered the global solar energy manufacturing landscape with the launch of the United Solar Polysilicon (USP) facility in the Sohar Freezone, marking a significant push into clean energy supply chains. The project represents a US $1.6 billion investment and signals Oman’s strategic shift toward sustainable industrial development and diversification away from oil and gas dependency.

The new plant is designed to produce up to 100,000 tonnes of high-purity polysilicon annually - a crucial raw material for solar photovoltaic (PV) panels. At full capacity, this production volume would support the manufacturing of nearly 40 gigawatts of solar modules each year, significantly strengthening Oman’s role in the global clean energy market and reducing reliance on imported solar materials.

The project, currently in a soft launch phase, will see a formal inauguration in the coming weeks. It incorporates advanced production technologies, including hydrogen-based processes that align with cleaner manufacturing practices, and systems for recycling gases and liquids used in production to minimize environmental impacts.

Backed by the Oman Investment Authority’s Future Fund Oman, international financiers such as the International Finance Corporation (IFC), and strategic partners including Indian solar manufacturer Waaree Solar (as a key offtaker), the initiative is expected to create jobs and foster related high-tech industries in the region.

This milestone underscores Oman’s ambitions to become a key player in sustainable energy transitions while expanding its industrial base within the Middle East and globally.

A $1.6 billion polysilicon plant in Sohar is a strategic move to break Gulf renewable value chains out of pure downstream deployment, and it opens upstream manufacturing exposure that will affect EU-CBAM-adjacent solar sourcing decisions for years. Our supply-chain-and-operations and energy-transition teams help clients evaluate what regional polysilicon supply means for offtake and disclosure strategy.