Oman is advancing its downstream chemicals industry with the development of a major acrylamide and polyacrylamide production facility at SOHAR Port and Freezone. The project, led by ZL Group, an oilfield services company, has secured financing through an agreement with Dhofar Islamic, the Islamic banking division of BankDhofar, which is the sole financer for the venture. Financial details of the agreement were not disclosed.
The new plant is expected to produce approximately 350,000 tonnes of acrylamide and polyacrylamide annually once fully operational. These specialized polymers play a critical role in enhanced oil recovery (EOR), hydraulic fracturing, and drilling activities, helping improve oil extraction from mature reservoirs by increasing water flooding efficiency. The project aims to position Oman as a significant regional and international supplier of these chemicals.
Located at SOHAR Port and Freezone, the facility benefits from access to integrated industrial infrastructure and major shipping routes, supporting the supply of domestic consumers and facilitating exports across the Gulf Cooperation Council (GCC) and global markets.
The development aligns with Oman’s Vision 2040 strategy by broadening the country’s manufacturing base, increasing industrial value addition, and diversifying the economy beyond hydrocarbon dependence. ZL Group’s broader objective includes establishing a fully integrated enhanced oil recovery value chain within Oman, encompassing raw material processing, polymer production, laboratory research, field applications, and technical support services.
Construction milestones include land acquisition in December 2023, construction commencement in December 2024, and installation of major equipment completed by February 2026. The facility spans 24 hectares with more than 129,000 square meters of covered space. Initial production capacity will be 45,000 tonnes of acrylamide monomer and 60,000 tonnes of polyacrylamide annually, with plans to scale up to full capacity thereafter.
ZL Group has invested over $97 million in the project, with more than half of the capital spent domestically. Upon completion, the plant is anticipated to generate roughly 450 direct jobs and support around 5,000 indirect employment opportunities. The facility is designed to meet Oman’s entire domestic demand for EOR polymers while exporting more than 65 percent of its output, transitioning the country from an importer of specialized oilfield chemicals to a regional exporter of high-value industrial products.
Representatives from Dhofar Islamic highlighted the project as an example of Sharia-compliant finance supporting strategic industrial investments that contribute to sustainable economic growth and industrial development within Oman.