OQ Refineries and Petrochemical Industries, a subsidiary of OQ, formerly known as Oman Oil Company, the global integrated energy group, has signed nine investment agreements with a total worth of approximately $88 million to establish industrial projects in the 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, they aim to boost investment in industries that meet the needs of local markets and exports.
Aiming to maximize 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 they pave the way for new opportunities for small and medium enterprises (SMEs).
This agreement is 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 small and medium enterprises (SMEs). Integral to this strategy is the localization of select goods, contributing an estimated $46 million 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.
This initiative comes in line with Oman Investment Authority’s vision in enriching ICV through empowering the private sector, localizing local industries, strengthening the local economy, and developing and stimulating small and medium enterprises.
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. This 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 localizing specialized 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 Mr. Hilal bin Ali Al Kharusi, Chief Executive Commercial & Downstream at OQ, alongside representatives of the following companies:
A $35 million agreement with Mohammad Riaz Sons Plastic Company for advanced sustainable plastic food packaging components, inked by the company Managing Director, Zain Mohammad Riaz.
An agreement to establish the Napco National project with an investment starting at about $15 million and increasing to $48 million, aimed at manufacturing packaging bags for petrochemical products, plastic compounds and packaging. The agreement was signed by Mr. Issam Chaaya, Vice President for Chemicals & Petrochemicals.
An agreement with MAK Germany GmBH to establish a project worth $11 million to produce specialized plastic compounds, signed by Mr. Mohammad Amiri, Executive Director.
An agreement with Madayn Plastic Company SPC for $8 million, to produce shrink wrap tapes, packaging bags for petrochemical products, food packaging and frozen food bags. The agreement was signed by Mr. Mohammed Al Loughani, Chairman of Madayn Plastic Company SPC.
A $6 million agreement with Jil Technology for innovative 3D manufacturing, signed by Ms. Ghada Al Yousef, Founder and CEO.
An agreement with Jcoplastic for the establishment of a project to produce plastic waste containers, boxes and pallets, with an investment of about $6 million in the first phase, signed by Mr. Antonio Foresti, the company’s CEO.
An agreement with Gemini Corporation for plastic recycling and sustainability to manufacture plastic products with an investment of $3 million. The agreement was signed by Mr. Surendra Patawari, Chairman of the Board of Directors of the company.
An agreement with the National Plastic Lumber Company for a project to produce various products from Wood Plastic Composite (WPC), used in construction, with an investment of $1.5 million. The agreement was signed by Mr. Omar Al Siabi, the company’s CEO.
An agreement worth $1.5 million was signed with Al Farida Industry & Trade to produce color masterbatch, signed by Mr. Hussein Mohammed, the company’s CEO.
Hilal bin Ali al Kharusi CEO- Commercial & Downstream OQ
“These agreements reflect OQ’s commitment to enhancing the Sultanate’s position in the development of the manufacturing industries, supporting small and medium enterprises (SMEs), particularly those involved in the industrial sector, to establish national industries in various fields. This effort aims to achieve self-sufficiency in products and position the Sultanate as a major exporter of these products. In addition to supporting the manufacturing industries that will be established in the Ladayn Polymer Park, OQ will purchase manufactured products such as plastic pallets and packing bags for polymer granules. OQ is also committed to supporting plastic recycling plants, utilizing the latest technologies that contribute to reducing negative use and environmental impact.”
In a related development, The Public Establishment for Industrial Estates ‘Madayn’ also signed seven land usufruct agreements with a duration of extendable 33 years, at reduced prices with investors. These agreements were signed by Mr. Dawood bin Salim Al Hadabi, CEO of Madayn. Additionally, Mr. Omar Mahmood Al Mahrizi, CEO of Suhar Free Zone, signed an agreement with Gemini Corporation aimed at recycling plastic.
