Oman’s Ladayn Polymer Park has attracted $155 million in investments since its launch two years ago, as part of the country’s initiative to expand its plastic downstream industries, a senior OQ Group official said.
Mundhar Al Rawahi, Technical & Commercial Director for Ladayn Park at OQ told Zawya Projects that 16 investment agreements have been signed to date with some projects already under construction.
“These agreements will create around 650 direct jobs and contribute significantly to the growth of the plastic conversion sector,” he said during an interview at the Arabplast event in Dubai on Wednesday. The projects are expected to commence production as early as the second quarter of 2025.
Located in Sohar Industrial City, the Park spans an area of more than one million square metres, and is a joint initiative between OQ, the Public Establishment for Industrial Estates (Madayn), the National Programme for Investment and Export Development (Nazdaher) and the Ministry of Commerce, Industry, and Investment Promotion.
Ladayn Polymer Park is among the fastest-growing industrial parks in the region, according to Al Rawahi.
“Investors need a minimum of 18 months from signing to production,” he explained. “We see that most of these agreements are progressing well, with some at advanced stages, and by the end of 2025, we expect a significant number of these projects to reach the production stage.”
Investors also have the flexibility to select locations within industrial areas, special zones, or free zones. A key announcement this year is the park’s expansion from Sohar to other parts of the country including Duqm and Salalah Ports.
“We believe with this we are enabling the investors to be more successful and sustainable by supporting their business models,” he said.
The Park currently offers a range of direct and indirect incentives. Direct benefits include proximity to raw materials, volume rebates, and waived land rents for the first two years, followed by discounts of up to 50 percent for the next three years. Oman’s low electricity costs also serve as an indirect benefit.
Al Rawahi emphasised OQ’s commitment to supporting the plastic conversion industries within Ladayn Polymer Park by supplying raw materials from its Liwa Plastics Industry Complex (LPIC).
“What differentiates Ladayn from similar parks in the region is first, OQ’s a strong commitment to support this park and its investors. Second, Oman’s strategic location with access to sea from north to south, which we believe is very important. The third point, which is also important, is geopolitical stability,” he said.
The 16 agreements involve investments from within Oman, Europe, China and India targeting local, Gulf and international markets.
On the taxation front, Al Rawahi said Oman offers a business-friendly tax structure with free zone investors exempt from corporate tax for 25 years, while industrial zone investors are exempt from corporate tax for 5 years, which is extendable for another 10 years.
Ladayn Polymer Park aims to achieve an output of around 150 kilotonnes of multi-use plastics products by 2030, according to previous statements by OQ.
(Reporting by Anoop Menon; Editing by SA Kader)
(anoop.menon@lseg.com)
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