ZEINOX, OQ Group to launch US$2.6M plastics factory in Oman, strengthening arab industrial ties

OMAN – Egypt’s Arab Metals Company ZEINOX and Oman’s OQ Group have signed a strategic cooperation agreement to establish a new plastics manufacturing facility in the Sultanate of Oman.

With an investment of US$2.6 million, the project will be implemented under Oman’s LADAYN industrial program, an initiative designed to boost local production capacity and strengthen the country’s export-oriented manufacturing base.

The agreement was signed during a formal ceremony attended by Abdullah bin Nasser Al-Rahbi, Oman’s Ambassador to Egypt, who called the initiative a testament to the growing economic cooperation between the two nations.

“This venture reflects the strong diplomatic and commercial ties that are translating into concrete industrial partnerships,” he stated.

The upcoming factory will produce a wide range of plastic products for both domestic consumption and export across neighboring Arab countries.

It is expected to contribute significantly to Oman’s Vision 2040 goals of economic diversification, industrial localization, and regional competitiveness.

Maged El-Zeiny, Chairperson of ZEINOX, affirmed the company’s commitment to expanding its regional presence through strategic alliances.

“This project reinforces our long-standing vision to create high-impact, cross-border industrial partnerships that support sustainable economic growth in the Arab world,” he said.

The facility will be part of the LADAYN program’s broader push to attract strategic investments in high-potential industrial sectors. According to Mundher Al Rawahi, Head of the LADAYN initiative, the program has already attracted 18 projects worth US$160 million, with a focus on polymer and materials processing.

OQ Group is spearheading LADAYN in collaboration with MADAYN (Public Establishment for Industrial Estates) and other national entities.

Wael Abbas, Vice Chairman of ZEINOX, highlighted the partnership as a key element of the company’s diversification strategy.

“We are building a robust investment portfolio across different regions. Collaborations like this not only enhance our global competitiveness but also enable us to contribute meaningfully to regional development,” he noted.

For OQ Group, the project is part of a longer-term effort to extend its polymer-focused value chain and position Oman as a manufacturing and export hub for advanced materials.

The group’s industrial investments are aimed at promoting innovation, attracting specialized foreign and regional capital, and enabling a shift toward a knowledge-based, diversified economy.

This collaboration between ZEINOX and OQ marks another example of how targeted industrial ventures are serving as catalysts for pan-Arab economic integration.

With the factory set to contribute to local job creation, technology transfer, and regional trade growth, it stands as a model for effective public-private cooperation within the Gulf and North Africa.

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