Salalah Free Zone secures $29 million investment for fertiliser manufacturing plant
Salalah Free Zone (SFZ) has signed a sub-usufruct agreement with Majan Petrochemical Industry to develop a $29 million ammonium sulfate fertiliser production plant, strengthening Oman’s downstream chemicals sector and expanding the free zone’s portfolio of value-added industrial projects.
The facility will be built on a 43,669-square-metre site within SFZ and is expected to support the country’s industrial diversification ambitions by increasing local fertiliser production and boosting export capacity.
The project forms part of SFZ’s strategy to attract high-value manufacturing investments that strengthen industrial value chains and enhance the competitiveness of Oman’s industrial sector.
Supporting Oman's Vision 2040
The development will leverage the free zone’s location on major international shipping routes, its integration with the Port of Salalah, and its logistics infrastructure to serve regional and global markets.
Once operational, the plant will manufacture ammonium sulfate fertiliser, a widely used agricultural input that improves soil fertility and crop yields. The facility is expected to help meet rising demand across regional and international markets while expanding the global reach of Omani industrial products.
The investment also complements the objectives of Oman Vision 2040 by expanding downstream manufacturing, increasing non-oil exports through the Port of Salalah, and reinforcing the Sultanate’s position as a regional hub for export-oriented industries serving Asia, Africa, and the GCC.
In addition to its industrial contribution, the project is expected to create skilled employment opportunities and generate business for Omani SMEs across sectors including logistics, engineering, construction, maintenance, and industrial services.
The facility will also introduce advanced fertiliser production technologies designed to improve efficiency and promote more sustainable manufacturing practices.
Dr Ali Tabook, Chief Executive Officer of Salalah Free Zone, said the project would strengthen the free zone’s growing chemicals manufacturing cluster.
“This project represents a strategic addition to Salalah Free Zone’s growing chemical manufacturing portfolio and reflects our commitment to attracting investments that build integrated industrial value chains rather than standalone production facilities,” he said.
Developing local talent
He added that SFZ aims to develop an industrial ecosystem where investors benefit from integrated logistics infrastructure, industrial services, and access to international markets, helping improve the competitiveness of their operations.
Dr Tabook also highlighted the long-term growth prospects for the fertiliser industry, noting that rising global demand for agricultural products continues to support investment in chemical manufacturing.
“We see this investment as an important opportunity to strengthen Salalah Free Zone’s contribution to this vital sector by leveraging Salalah’s competitive advantages as a global logistics hub connecting manufacturers with key international markets efficiently and reliably, while supporting Oman’s economic diversification agenda and the expansion of non-oil exports,” he said.
