By 2026, the Suhar Free Zone on Oman’s northwest coast will host a landmark industrial project—a solar cell and module manufacturing base invested by China’s JA Solar. Valued at 217.3 million Omani rials (approximately USD 564 million), this major initiative represents not only a significant bilateral cooperation project, but also a new model for Chinese companies participating in the Middle East’s energy transformation and supporting Oman’s "2040 Industrial Strategy."

Spanning 32.5 hectares, the facility is expected to reach an annual output of 6 GW of solar cells and 3 GW of solar modules. By deploying full-chain manufacturing capabilities, Oman is poised to become a key node in the regional clean energy value chain. This agreement sends a number of signals worth close attention—from its economic and industrial impact to its geopolitical implications.

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A Tangible Breakthrough in Oman’s Clean Energy Strategy

At the closing ceremony of Oman’s inaugural international investment event—the Advantage Oman Forum—JA Solar signed a strategic agreement with the Oman Investment Authority, the Port of Suhar and Free Zone, and Majis Industrial Services. The timing is deliberate, coinciding with Oman’s push to implement its "2040 Industrial Strategy," which emphasizes high-end manufacturing, economic diversification, and green transformation.

Khalid bin Salim Al Khasibi, Director General of Industry at the Ministry of Commerce, Industry and Investment Promotion, stated, “This project supports Oman’s 2040 Industrial Strategy. Renewable energy is a priority sector because of its potential to create new industrial opportunities, increase the manufacturing sector’s contribution to GDP, and diversify the energy mix.” This policy endorsement positions the JA Solar project as a crucial pillar in Oman’s path toward industrial modernization.

Importantly, this is not merely a plant construction project—it encompasses core manufacturing processes and fosters localized industrial clustering. From polysilicon processing to module assembly, JA Solar will integrate the entire production process within Oman’s ecosystem, advancing local technology capacity while driving stable employment and upstream-downstream investment flows.

Oman, a Gulf nation with abundant sunlight and a strategic location, has long struggled with limited industrial infrastructure and fragmented supply chains—key constraints on its clean energy development. JA Solar’s overseas venture addresses this gap not by seeking export substitution, but by embedding full-chain integration into the Middle East market, offering a compelling example of high-quality globalization for Chinese manufacturing.

Fan Jingchao, General Manager of JA Solar Oman, emphasized: “Our plant marks a significant leap in the solar PV supply chain, integrating all critical components from polysilicon to modules. Suhar Free Zone’s strategic location offers vital logistics advantages, placing us at the heart of a fast-growing renewable energy hub.”

The implication is clear: this factory is not designed solely for Oman’s domestic market. With Suhar Port’s access to the Arabian Sea, the plant will serve as a logistical node for exports to high-growth markets such as India, East Africa, and Southern Europe, positioning it as a key overseas production base in China’s "going global" strategy for its PV industry.

From a global perspective, this project signifies the proactive shift of traditional energy economies in the Middle East toward a “new oil” paradigm. As the world pursues energy transition and carbon neutrality, Middle Eastern countries are recognizing the need not just to export energy—but to export green capabilities.

Chinese companies have become accelerators in this transition. Led by PV manufacturers like JA Solar, China is exporting not only equipment, but also technology, management, and integrated services—embedding itself in the green transformation of host countries. This represents a key pathway for advancing China’s high-quality Belt and Road development and shaping a new global clean energy order.

From a risk perspective, the project also reflects the growing maturity of Chinese firms in overseas manufacturing. Against the backdrop of geopolitical tensions, raw material price volatility, and the advancing carbon border adjustment mechanisms, the “produce locally + supply nearby” model helps mitigate trade barriers, enhance cost control, and establish new steady-state operations for Chinese enterprises abroad.