A gateway connecting Omani industries to the world

Oman

Emile Hoogsteden, CEO of Sohar Industrial Port Company, talks to The Energy Year about how SOHAR Port and Freezone achieved its 2050 vision by 2025 and how it differentiates itself from other industrial areas in Oman. SOHAR is managed through a joint venture between the Port of Rotterdam and Asyad Group.

SOHAR Port and Freezone hit its 2050 vision this year. How did you get here?
SOHAR Port and Freezone is the result of a vision of the late Sultan Qaboos bin Said back in the 1990s. It was carefully planned by the government, with the right partner, the Port of Rotterdam, and executed step-by-step. The idea was to be full by 2050, but as of 2025, we are almost fully leased out, with more than USD 30 billion in investments, 42,000 jobs and USD 45 billion in annual trade value. And the artist’s impression from the 1990s looks almost exactly like the real thing today.
As a vibrant investment ecosystem transforming trade in Oman through sustainable practices, the integrated port and freezone under one management has been a big driver of success, creating synergies and making it easy for companies to come, set up and expand. We have world-class, deepwater infrastructure with depths of up to 25 metres in depth and world-class terminal operators such as Advario, Hutchison Ports and C. Steinweg Group, and proven success stories such as Jindal Shadeed and Vale, who keep reinvesting.
In the past two years alone, investments have surged – USD 4 billion in 2024 and USD 1.2 billion in the first half of 2025. More often than not, companies come to us. We work in a true partnership model next to our customers, solving bottlenecks and helping with permits, contractors or whatever is needed. That has created a self-sustaining ecosystem, boosting not just the port, but the community as well.
The vision became reality far earlier than expected, with bigger returns, more jobs and stronger local content and in-country value contributions than anyone ever imagined.

How does SOHAR differentiate itself from Duqm and Salalah?
SOHAR, Duqm and Salalah each serve distinct roles. Salalah is mainly a container trans-shipment hub in the south. Duqm is building around renewables and green hydrogen. SOHAR is a destination connecting businesses to the world as an established gateway, handling more than 70% of Oman’s imports and exports, anchored by its proximity to Al Batinah North and Muscat.
With an integrated port and freezone and a strong industrial base – such as Jindal Shadeed, OQ and Oman Methanol Company – SOHAR caters to both domestic and export markets, driving downstream growth in chemicals, polymers, ferrochrome and biofuels. Our synergies create an economic dynamic others can’t yet match, enabling growth alongside other ports rather than at their expense.

Which clusters are you targeting in phase two of Sohar’s free zone?
In phase two of the freezone, SOHAR is targeting new clusters alongside its established metals, food and petrochemicals base. These include a full solar value chain that spans from polysilicon to wafers and ingots to cells and modules, as well as downstream chemicals and polymers. The latter two include recyclable plastics, our own biofuel refinery, e-fuels such as methanol and ammonia and a complete EV [electric vehicle] and battery value chain, from raw materials to parts.
Phase two is already more than 50% leased, prompting plans for phase three. The port has only around 80 hectares [800,000 square metres] left available, which is expected to be taken within the next two to three years. This has driven us to begin expansion talks for the port with the government. Investment will be in the billions – phased but fast.

What role does SOHAR play in Oman’s net-zero ambitions?
If Oman wants to be net zero, then SOHAR needs to be net zero. As an industrial port with high CO2 emissions, we have a strategy for efficiency improvements, renewables, green hydrogen, CCUS, heat reuse, biofuels, e-fuels and shore power.
We run initiatives from rooftop solar for our employees and biofuels in our tugs to large-scale carbon capture linked to OQGN’s pipeline network for EOR. We act as co-ordinator and facilitator through the SOHAR Net Zero Alliance, bringing tenants together and launching pilots, and fostering co-operation among government, industry and academia to decarbonise.

How significant is the recent white hydrogen discovery near Sohar?
The MoU with HYNAT to explore naturally occurring hydrogen near Sohar could be a major step for local decarbonisation. Reserves in the area are confirmed, and the next stage is extraction testing to assess feasibility and energy potential. If viable, it would provide a direct, low-carbon fuel source for Sohar’s industries. We are also looking to develop green hydrogen in SOHAR and further strengthen SOHAR’s position as a green manufacturing hub.

What is the strategic advantage of digitalising the port and freezone?
Digitalisation is one of our strategic pillars, next to energy transition. The two go hand-in-hand. The first step is efficiency, and digitalisation is the enabler. We don’t aim to be the biggest port, but we do want to be the best in terms of reliability, transparency, efficiency and customer value. We’re building our own market and customer base with a different approach that delivers real value to Oman and our clients. This entails upgrading processes, cutting waste and digitising.
For example, our MARASI management platform connects all stakeholders in vessel calls in real time, eliminating delays, while our upcoming Port Community System will streamline planning and logistics, including Customs processes.
As part of our ambition to grow as a bunkering hub, we’ve made mass flow meters mandatory to ensure accurate fuel delivery and quality control. We’re also deploying drones and predictive maintenance through our GeoHub to further raise quality standards.

What is SOHAR’s long-term vision for 2030 and beyond?
Our aspiration is to be the best port, and stay the best, by delivering value not only to our customers but to Oman. Building on a strong and proven foundation, we currently contribute 2.6% to the country’s GDP, a testament to our integral role in the nation’s economy.
Looking ahead, our growth strategy is rooted in leveraging our unique strengths. We are focused on attracting green manufacturing industries, expanding our capabilities in bunkering and e-fuels and developing value chains in emerging sectors such as batteries and chemicals, which in turn drive more vessel traffic and cargo volumes.
Our approach centres on cultivating strategic clusters with high-quality, long-term investors and companies that boost local content and are here to stay. We’re not chasing the quick buck. It’s about quality, not quantity, with a consistent focus on long-term success and resilience.

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