Oman’s vision 2040: Integrated aluminium cluster to propel economic growth

The oldest independent state in the Arab world, Oman is progressing with plans to establish an 'Integrated Economic Cluster for Aluminium Industries' in Suhar, a key hub for multibillion-dollar investments focused on this valuable metal. The Oman Vision 2040 Implementation Follow-Up Unit leads these efforts, collaborating closely with various government ministries and agencies to bring this strategic initiative to fruition.

The Oman Vision 2040 Implementation Follow-Up Unit stated in the latest annual report, "The Integrated Economic Cluster for Aluminium Industries in Suhar aims to achieve integration among the various aspects of the aluminium industry by linking the upstream (primary aluminium production) with the downstream (higher value-added industries). The cluster focuses on fostering growth and providing a comprehensive infrastructure to support the sector through (a number of) objectives and strategies."

Sohar Aluminium, established in 2004 with an investment of approximately $2.4 billion, is one of Oman’s most significant non-oil industrial enterprises. With an annual capacity of 395,000 tonnes, the smelter dedicates around 60 per cent of its hot metal production to a range of downstream customers. Notable recipients include Oman Aluminium Processing Industries (OAPIL), the leading manufacturer of aluminium rods and overhead line conductors in the country; Oman Aluminium Rolling Company LLC (OARC), known for its production of flat-rolled aluminium products; Oman Aluminium Cast LLC (OAC), which specialises in high-current bus bars for use in aluminium smelters and electrolysis plants; and Synergies Casting Oman (SCO), a facility focused on producing premium aluminium alloy wheels for the global automotive market.

Establishing an integrated economic cluster for Aluminium Industries, as highlighted by the Oman Vision 2040 Implementation Follow-up Unit, holds significant potential for driving growth in both upstream and downstream segments of the aluminium value chain. This cluster could bolster primary aluminium production and advance conversion processes to create higher-value-added products, further strengthening Oman’s industrial landscape.

The potential for developing new downstream processing industries in Oman holds great promise for enhancing value addition and fostering product innovation. An integrated approach to the sector could also drive competitiveness by boosting efficiency and productivity. Additionally, opportunities exist to develop robust supply chains and integrated logistics solutions to optimize transportation and distribution across factories.

In June, a joint team from key institutions met with senior officials from Sohar Aluminium to explore investment opportunities arising from an integrated economic cluster for the aluminium industry. The team committed to creating a detailed action plan to guide the development of this cluster in Sohar. The strategy will likely include initiatives to promote aluminium recycling, a growing sector in Oman with considerable untapped potential.

Image credit: Telecom Review

Information credit: Oman Observer