Oman secures US$105M integrated fertilizer complex
The project is expected to manufacture a range of fertilizer and industrial products for domestic and international markets.
OMAN – Salalah Free Zone (SFZ) has formally signed a major usufruct agreement with DuroMENA LLC, a subsidiary of the Omani business conglomerate Badr Investment Group, to construct a US$105 million integrated fertilizer and chemical production complex in the Dhofar Governorate.
The landmark deal underscores expanding investor confidence in Oman’s specialized industrial infrastructure, regulatory framework, and strategic maritime connectivity along major international trade corridors.
The state-of-the-art facility is engineered to produce up to 100,000 tonnes per year of potassium sulfate, commonly known as sulfate of potash (SOP), alongside up to 100,000 tonnes per year of granular calcium carbonate, in addition to specialized derivative chemical products.
SOP serves as a premium, chloride-free agricultural nutrient essential for high-value crops, soil health management, and yield optimization.
Output from the Salalah complex will primarily target high-demand export markets across the Gulf Cooperation Council (GCC), India, Southeast Asia, and East Africa, directly leveraging Salalah’s deepwater port capabilities to service global supply chains.
From a macroeconomic perspective, the US$105 million industrial investment represents a concrete step toward advancing Oman Vision 2040, the Sultanate’s national strategy to accelerate economic diversification and reduce dependence on crude hydrocarbon revenues.
By converting raw inputs into high-value chemical products locally, the project creates sustainable downstream value chains, generates skilled employment opportunities, and expands non-oil export volumes.
Furthermore, establishing a regional production hub for agricultural chemicals helps address pressing regional fertilizer demands and bolsters global food supply chain resilience.
Officials from Salalah Free Zone highlighted that the development aligns with SFZ’s strategic focus on attracting targeted, capital-intensive manufacturing clusters.
Investors in the free zone benefit from competitive fiscal incentives, streamlined administrative procedures, direct integration with the Port of Salalah, and proximity to primary trade routes linking Asia, Africa, and Europe.
The participation of domestic capital through Badr Investment Group further demonstrates strong local business confidence in Oman’s long-term industrial transformation and investment ecosystem.
The project is also expected to contribute to industrial development and employment in Oman through construction, manufacturing, logistics, maintenance and supporting services.
Its location within the free zone could facilitate integration with other industrial and logistics operations, potentially creating additional opportunities for downstream businesses.
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