OQ ACCELERATES NATIONAL DOWNSTREAM GROWTH WITH 11 NEW LADAYN AGREEMENTS AND OVEROMR 27 MILLION IN INVESTMENTS
Bahrain, December 2025 –Anchoring Oman’s position as a rising industrial hub within the region’s polymer value chainsand underscoring its rise as a regional downstream manufacturing base,OQ, Oman’s global investment group,has signed 11 new investment agreements under the Ladayn Polymer Park programme (“Ladayn”), backed by more than OMR 27 millionin committed investments, bringing the programme’s total investment to OMR 85 million. Signed on the sidelines of the 19thAnnual Gulf Petrochemicals and Chemicals Association (GPCA) Forum in Bahrain, with a diverse set oflocal, regional and international polymer manufacturers, the agreements cement the commercial ecosystem that converts locally produced polymers into higher-value products.
This milestone expandsLadayn’s portfolio, reinforces the country’s downstream industrial capabilitiesand signalsrising regional confidence in Oman’s emerging role as a reliable, cost-competitive hub for downstream polymer manufacturing.
A key competitive driver for these investments is OQ’s secure and cost-efficient supply of locally produced polymers, primarily polyethylene and polypropylene, manufactured at the Liwa Plastics Industries Complex (LPIC) in Suhar. As Oman’s flagship petrochemicals asset, LPIC transforms Omani natural gas into high-demand polymers, enabling a fully integrated domestic value chain that provides downstream manufacturers with predictable pricing, long-term feedstock stability and logistics efficiency.
The agreements, signed by Sadiq Hassan Al Lawati, Managing Director at OQ Marketing, with industrial partners, complement commitments secured over the past two years. They expand Ladayn’s footprint as Oman’s first integrated polymer-to-product industrial platform and accelerate the country’s shift toward an advanced downstream manufacturing economy.
Commenting on the milestone, Ashraf Hamed Al Mamari, Group Chief Executive Officer of OQ, said:“These agreements reflect OQ’s long term investment direction as the national investment arm for the energy and related industries. Through these partnerships, we are translating national strategies into industrial projects with direct economic impact. Our targeted investments under the Ladayn programme are driving a structural transformation in Oman’s downstream manufacturing landscape. Polymers are shifting from basic industrial outputs into drivers of an integrated production ecosystem that attracts high quality investment, strengthens local content, creates sustainable employment and enables the private sector to build industries that serve both domestic demand and global markets. The programme also reinforces Oman’s position as a competitive industrial hub connected to global supply chains, in alignment with Oman Vision 2040 and national diversification priorities.”
“The programme is designed to scale the localisation of the Group’s raw materials and products, advancing industrial integration and boosting the global competitiveness of Oman’s downstream industries through added-value integrated value chains”, he added.
Eng. Dawood bin Salim Al Hadabi, CEO of Madayn, said: “The signing ceremony in Bahrain reaffirms the success of the Ladayn Programme, established through a memorandum of understanding between Madayn and OQ in May 2022 within Phase Seven of Suhar Industrial City. Since then, the programme has expanded beyond Madayn’s industrial cities, demonstrating its ability to attract and localise plastics industries, strengthen economic diversification, draw investment, maximise the value of natural resources, and enable private-sector growth for both local and export markets.”
Dr. Ali bin Mohammed Tabouk, CEO of Salalah Free Zone, added, “These agreements reaffirm Salalah Free Zone’s commitment to strengthening industrial value chains and enhancing local content. The signed projects contribute directly to boosting the competitiveness of the industrial sector, and we are proud of our partnership with OQ and the Ladayn Programme in advancing value creation for the national economy.”
Further highlighting the collaborative model, Eng. Mundhar Saleh Al Rawahi, Ladayn Programme Head, OQ Marketing, said, “These agreements exemplify the integration between the public and private sectors. At OQ, we believe that developing the plastics manufacturing industry will enhance the efficient use of national resources, stimulate industrial innovation and contribute to economic diversification. He added that “by attracting investors with regional market ambitions, the programme continues to solidify Oman’s competitive standing with sustained year on year growth.”
Several investors welcomed the facilitation measures, notably the provision of raw materials at preferential rates, enhancing their competitive edge and creating new pathways for growth across regional and global markets.
The signings comeat a time when the GCC chemical and petrochemical sector continues to demonstrate resilience amid global market shifts. According to the GPCA 2024 Annual Report, the Gulf maintained 93% capacity utilisation, significantly above global averages, and contributed 33% of the region’s manufacturing GDP. With global producers facing softer demand and tighter margins, Gulf economies are accelerating investment into higher-value conversion industries and advanced polymer applications, a shift that aligns closely with Ladayn’s mandate and Oman’s ambition to build an integrated, export-capable manufacturing base.
At the heart of this industrial transition, OQ is buildingthrough the new agreements signed under Ladayn, Oman’s first integrated polymer-to-product industrial ecosystem, strategically located near the OQPolymer complex in Suhar. The programme leverages Oman’s feedstock advantage, competitive cost structure and established logistics corridors connecting the Gulf, East Africa and South Asia, indicating increased confidence in Oman as a scalable and investment-ready platform for regional manufacturing.
The newly signed investments cover a broad range of product categories responding to national priorities and market demand, including advanced water storage systems; non-woven healthcare materials; industrial and food-grade containers; packaging solutions; and specialised PE/PP applications. Together, these projects are expected to generate more than 400 direct skilled job opportunities for Omanis, stimulate specialised SME participation, and expand the country’s portfolio of value-added manufactured goods.
The programme’s momentum has accelerated since its international showcase at K 2025 in Düsseldorf, where global converters highlighted Oman’s strategic position, regulatory stability and cost competitiveness relative to other emerging Gulf manufacturing centres. The increased investor interest reflects a structural shift in how Oman is perceived in the region’s downstream landscape.
With this latest expansion, OQ continues to cement its role as a strategic enabler of Oman’s industrial future,translating national strategies, Vision 2040 and the In-Country Value Programme, into tangible industrial outcomes. By deepening the domestic value chain from polymer production to product manufacturing, OQ is strengthening the country’s position at the centre of Gulf competition throughvision-led investments, enabling a sustainable, export-ready, high-value industrial base that will support the nation’s diversification and growth ambitions for decades to come.
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About OQ:
OQ is a global energy investment group rooted in Oman. OQ has operations across 17 countries that cover the entire value chain from exploration and production of oil and gas, refineries and petrochemicals to marketing and distribution of end-user products reaching more than 80 countries worldwide. Committed to sustainability, OQ Alternative Energy focuses on investments in renewables and green hydrogen in Oman.
For more information, please contact:
Iman Al Gheilani, Manager External Communication & Branding
Email: [email protected]
Website: www.oq.com