Sunday, February 01, 2026

Oman News

Oman begins solar operations at Al Dhahirah Special Economic Zone project

The Special Economic Zone in Al Dhahirah has launched a solar power system for its main roads and surface water drainage project, implemented by an Omani-Saudi consortium.

Oman News Agency

info@thearabianstories.com

Sunday, February 1, 2026

MUSCAT – The solar system produces 2,446 kilowatt-hours per day, with a peak capacity of 512 kilowatts and battery storage capacity of 788 kilowatt-hours. The hybrid system operates entirely on renewable energy during the winter season. In summer, it relies on solar energy supported by batteries at a rate of 70 per cent, while diesel generators supply the remaining 30 per cent during evening hours. The system is expected to reduce carbon emissions by an average of 24.8 tonnes of carbon dioxide per month and achieve cost savings of up to 25 per cent.

The main roads and surface water drainage project represents a key foundation for the development of the Special Economic Zone in Al Dhahirah. Construction work is progressing steadily, with an actual completion rate of 14.87 per cent compared to a planned rate of 14.41 per cent.

Engineer Ibrahim bin Yousef Al Zadjali, Director of the Special Economic Zone Development Project in Al Dhahirah Governorate, said the operation of the solar system aligns with the Public Authority for Special Economic Zones and Free Zones’ efforts to encourage companies operating in special, free and industrial zones to adopt renewable energy solutions. He noted that 17 square kilometres of the zone’s master plan have been allocated for solar farms and renewable energy projects.

In a statement to the Oman News Agency, Al-Zadjali explained that 600 solar panels were installed in the first phase of a mobile solar panel farm dedicated to the roads and drainage project, covering an area of 5,000 square metres. The system was implemented by an Omani workforce from IB Energy.

He added that the project reflects decisions by the Authority’s Board of Directors to allocate designated areas for solar panel installations within labour camp zones, underscoring the Authority’s commitment to ensuring environmental sustainability across projects in the region.

Al Zadjali also highlighted the project’s focus on local added value. The Omani-Saudi consortium has signed 11 agreements with small and medium enterprises (SMEs), with contracts awarded to SMEs accounting for more than 27 per cent of the total project cost of RO 22.3 million. Enterprises registered in Al Dhahirah Governorate represent 60 per cent of the total value of SME contracts.

Last year, the Public Authority for Special Economic Zones and Free Zones floated tenders for the implementation of the dry port and veterinary quarantine facilities (Package 3), as well as the administrative and commercial building complex (Package 4). Both tenders are expected to be awarded in the coming period.

Covering an area of 388 square kilometres, the Special Economic Zone in Al Dhahirah was established to stimulate cross-border trade between the Sultanate of Oman and the Kingdom of Saudi Arabia, support economic diversification, and capitalise on the zone’s strategic location, approximately 20 kilometres from the Rub’ Al Khali border crossing.

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