Oman's $1.6B Solar Factory Powers Clean Energy Outside China

The Middle East just became a major player in the global solar energy revolution, and the timing couldn't be better.

United Solar Holdings completed its $1.6 billion polysilicon factory in Oman's Sohar Port and Free Zone after just 22 months of construction. The facility produced its first solar-grade polysilicon in early 2026 and aims to reach full capacity by year's end.

The numbers tell an impressive story. The factory will produce 100,000 metric tons of polysilicon annually, enough to support 40 gigawatts of solar panel production. That's enough solar capacity to power millions of homes.

"It's the largest solar factory that we know of outside of China, and it's designed to be best in class in terms of efficiency and cost competitiveness," said Binyam Giorgis, the company's chief financial officer.

The project attracted serious backing from multiple sources. The International Finance Corporation provided $480 million in long-term debt, while local banks contributed over $400 million. Oman's sovereign wealth fund invested $260 million, becoming the largest single investor.

Founder Longgen Zhang, who previously led Chinese polysilicon producer Daqo New Energy, established the company in 2023 with a clear vision. He saw growing demand from countries looking to diversify their solar supply chains beyond China while maintaining competitive costs.

The factory already meets quality and purity requirements during its testing phase. It complies with strict US Foreign Entity of Concern rules and European environmental standards that many buyers now require.

Environmental responsibility shaped the factory's design from the start. The facility discharges zero liquid waste into the environment. Plans are underway to build an on-site solar plant to power at least part of the factory's operations, reducing reliance on Oman's gas-powered grid.

The Ripple Effect

The Oman factory arrives as countries worldwide accelerate their clean energy transitions. India's solar manufacturing has grown rapidly, and Indian module maker Waaree Energies already invested $30 million in the project with supply agreements in place.

Manufacturers in the United States, India, and Southeast Asia have signed agreements to purchase the Oman-produced polysilicon. These tier-one manufacturers are testing and qualifying the material for their production lines.

The factory's strategic location in a free trade zone and Oman's friendly international relations position it well for global markets. The diversified customer base across multiple continents protects against supply chain disruptions that have challenged solar manufacturers in recent years.

Beyond immediate production goals, the facility demonstrates that world-class solar manufacturing can succeed outside traditional hubs. Its combination of scale, environmental standards, and cost competitiveness creates a new model for clean energy manufacturing.

The official inauguration is scheduled for April 2026, marking a milestone in making solar energy more accessible worldwide.