Salalah Free Zone (SFZ) has signed an agreement with Majan Petrochemical Industries to establish an ammonium sulphate fertiliser plant with an investment of more than OMR 11 million (US$29 million).

The project, to be developed on a site covering nearly 44,000 square metres, marks another step in strengthening SFZs position as a leading destination for value added industrial investment and supporting the growth of Oman’s chemical and manufacturing industries.

The project forms part of the SFZ’s drive to attract industries that contribute to economic diversification, strengthen industrial value chains and enhance the competitiveness of the industrial sector. It benefits from the Zone’s strategic location on global trade routes, its direct integration with the Port of Salalah, its advanced infrastructure and the investment friendly environment it offers.

The plant will produce ammonium sulphate fertiliser, one of the most widely used fertilisers in the global agricultural sector. It is valued for its effectiveness in improving soil fertility and increasing crop yields. The project will help meet growing regional and international demand for fertilisers while strengthening the presence of Omani industrial products in overseas markets.

The project will support the objectives of Oman Vision 2040 by promoting value added manufacturing industries, increasing non oil exports through the Port of Salalah and making greater use of the strategic location of the Free Zone to access key markets in Asia, Africa and the GCC. This will further reinforce the Sultanate of Oman’s position as a regional manufacturing and export hub.

The project will also generate wider economic benefits across a range of supporting sectors by creating quality employment opportunities and increasing the participation of small and medium enterprises in supply chains relating to transport, logistics, engineering, maintenance, contracting and industrial services. In addition, it will contribute to knowledge transfer and the adoption of advanced fertiliser production technologies, enhancing production efficiency and the optimal use of resources in line with international industrial and environmental best practice.

Dr Ali Tabouk, Chief Executive Officer of the Salalah Free Zone, said: “This project represents a strategic addition to the chemical industries portfolio of the Salalah Free Zone. It reflects our approach of attracting investments that build integrated industrial value chains rather than simply establishing production facilities. We are developing an industrial environment that enables investors to benefit from the integration of logistics infrastructure, services and target markets, thereby enhancing the competitiveness of their projects at both the regional and international levels.”

The signing of the agreement reflects the continued success of SFZ in attracting high quality industrial investments that contribute to sustainable economic development and reinforce its position as one of the region’s leading investment destinations for manufacturing and export industries. It also highlights the Zone’s commitment to providing an integrated business environment that supports investor growth and responds to changing global economic trends.

The signing ceremony was attended by Qais bin Mohammed Al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones. The agreement was signed by Dr Ali Tabouk, Chief Executive Officer of Salalah Free Zone, and Saeed bin Mousa Al Junaibi, Partner and Chairman of the Board of Majan Petrochemical Industries.