Last updated: July 28, 2026
Oman’s solar manufacturing sector just hit a major milestone. United Solar Holding has secured a $50 million investment from the International Finance Corporation (IFC), completing its $1.6 billion capital raise for a polysilicon facility in Sohar Free Zone. The closing marks one of the largest renewable-manufacturing fundraises in the Sultanate’s history and signals growing international confidence in Oman’s solar supply chain ambitions.
Polysilicon — the raw material used in the earliest stage of solar panel manufacturing — has traditionally been produced almost entirely in China. United Solar’s Oman facility is positioned to change that balance for the Middle East, with output already underway since January 2026.
What the IFC Investment Means for United Solar
The World Bank Group’s IFC arm arranged and mobilized more than 30 percent of the total capital raised for the project, according to a statement from United Solar. The $50 million tranche closes out the company’s approximately $1.6 billion fundraising effort.
Key Fact: United Solar’s CFO Binyam Giorgis called the closing “a powerful endorsement of our long-term commercial strength.”
The Oman Investment Authority (OIA), the country’s sovereign wealth fund, remains the single-largest shareholder in United Solar — reinforcing the state’s direct stake in scaling up domestic solar manufacturing capacity as part of its broader economic diversification strategy.
Inside the Sohar Free Zone Polysilicon Plant
The polysilicon facility is located in Oman’s Sohar Free Zone, a hub increasingly positioned as the country’s solar manufacturing corridor. Key figures from the project:
- Operational since: January 2026
- 2026 production target: Up to 100,000 tonnes of polysilicon
- Full-capacity module output: Almost 40 GW of solar modules annually
- Household impact: Enough capacity to power up to 12 million homes
- Emissions avoided: An estimated 8.8 million tonnes of greenhouse gases per year at full capacity
- Jobs created: Around 3,000 direct and indirect positions
These numbers place the Sohar plant among the largest polysilicon operations announced globally this year, and firmly establish Oman as a serious contender in solar component manufacturing — not just project deployment.
Why Polysilicon Manufacturing Matters for Oman’s Solar Ambitions
Most solar developers in the Gulf import cells and modules from overseas, exposing projects to supply-chain risk and shipping delays. A domestic polysilicon source changes that equation for Oman in three ways:
- Supply-chain security — local polysilicon reduces dependence on a small number of overseas suppliers.
- Cost stability — shorter, in-country logistics can smooth out price volatility for developers.
- Economic diversification — manufacturing jobs and export revenue support Oman’s shift away from hydrocarbons.
This announcement follows a wave of related solar manufacturing news in Oman this month, including a separate $1.744 billion Future Fund Oman package for a 6 GW integrated solar cell and module plant, also based in Sohar Free Zone. Together, these projects suggest Sohar is emerging as the anchor location for Oman’s solar value chain.
How This Fits Oman’s Vision 2040 Renewable Targets
Oman is targeting net-zero emissions by 2050, with an interim goal of generating 30 percent of its electricity from renewable sources by 2030 and reaching 100 percent clean-energy capacity by 2050. Manufacturing capacity like the United Solar plant supports these targets on the supply side, complementing generation projects such as Nama Power and Water Procurement Company’s plan for six solar power plants totaling 6 GW, expected online in 2030 and 2031.
For engineers, developers, and investors tracking Oman’s renewable sector, the message is clear: the country is building both ends of the solar value chain — generation capacity and the manufacturing base to supply it — at the same time.
Frequently Asked Questions
What is polysilicon used for in solar panels?
Polysilicon is the refined raw material used to produce the silicon wafers found in most solar cells. It is one of the earliest and most capital-intensive stages of solar panel manufacturing, and until recently was produced almost exclusively outside the Middle East.
Where is United Solar’s polysilicon facility located?
The facility is located in Oman’s Sohar Free Zone, an industrial hub that is becoming a center for the country’s solar manufacturing sector, alongside other announced projects in the same zone.
How much funding did United Solar raise for the project?
United Solar completed an approximately $1.6 billion capital raise, with the final $50 million tranche coming from the IFC, part of the World Bank Group. The IFC mobilized more than 30 percent of the total capital.
When will the plant reach full production capacity?
The plant began operations in January 2026 and is targeting up to 100,000 tonnes of polysilicon production by the end of 2026. At full capacity, it is expected to support production of almost 40 GW of solar modules annually.
How does this project support Oman’s Vision 2040 goals?
It builds domestic manufacturing capacity that supports Oman’s target of 30 percent renewable electricity by 2030 and 100 percent clean-energy capacity by 2050, while creating around 3,000 jobs and reducing reliance on imported solar components.
Conclusion
United Solar’s completed $1.6 billion fundraise cements Sohar Free Zone as a rising hub for solar manufacturing in the Middle East — and gives Oman a domestic foothold in a supply chain long dominated by Asia. As generation and manufacturing projects scale up in parallel, Oman’s path toward its Vision 2040 renewable targets is looking increasingly concrete.
Want to understand what Oman’s growing solar manufacturing base means for your project’s supply chain? Contact AL DHAW Sustainability Energy for a consultation.