Oman eyes India to expand downstream aluminium industry with new zone

With all that is happening around the world, especially in the global aluminium industry, Oman has been trying to court India to seek Indian investment within its downstream aluminium sector. The main aim here is to position the downstream aluminium sector as an important part within the industrial diversification strategy under Vision 2024. An event held in New Delhi focused on attracting Indian aluminium companies to contribute to the Gulf nations by setting up value-added operations.

In addition to this, Muscat, upon the success of its plastics cluster, is now eager to expand the success by inviting Indian investors to join in on a new aluminium processing zone. This initiative is part of the rapidly growing economic partnership between India and Oman.

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The aluminium zone

Three years back, Oman initiated a plastics development zone, which was deemed to be quite a success, attracting 28 signed projects so far. Out of those, about ten are already in production or getting close to it, while the rest are at different stages of development, according to an Omani official.

Mundhar Al-Rawahi, who heads the Ladayn programme, with the focus on outlining the plans for leveraging the country's aluminium smelter as the primary downstream supplier to the zone, said, "The idea is to replicate this model in aluminium. The new cluster will focus on value-added processing and manufacturing rather than raw material exports."

Oman's push for aluminium comes at a time when investment between India and Oman has surged, tripling to an impressive USD 5 billion since 2020. The increase in investment is mainly driven by the metals manufacturing sector, with green steel and ammonia becoming key areas of collaboration. The country, which shares a strong defence partnership with India, is also reportedly exploring cooperation in strategic fields like space, rare earth minerals and cybersecurity, as noted by Indian officials.

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Event held in New Delhi, India

The Embassy of the Sultanate of Oman, hosted an investment promotion event in New Delhi, where all the Omani officials and the other industry representatives called attention of various Indian industry players, trade bodies, strategic partners and investors to collaboratively explore various opportunities for the Oman aluminium industry value chain, especially in areas like extrusion, rolling, automotive components, fabrication, construction materials and packaging.

The event also brought together Indian companies and Omani stakeholders for some valuable business-to-business meetings. The discussion focused on potential joint ventures, exploring technological partnerships and setting up long-term supply arrangements.

On the sidelines of the event, Multi Bond Metal LLC, an industrial entity often associated with operations in Dubai and Oman, specialising in metal processing and, recently, advanced polymer compound manufacturing, signed a USD 4.5 million memorandum of understanding (MoU) with Ladyn. This partnership aims to establish an 8,000-tonne coil coating and lamination line plant in Oman.

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Omani delegates persuading Indian industrialists

During the event, as pointed out by Tahra Al Zadjali, Minister Plenipotentiary and Deputy Head of Mission at the Omani Embassy, Oman's strategic location, competitive energy costs, investor-friendly policies and multiple established infrastructure have nudged the growing partnership between India and Oman, ensuring supported industrial growth.

Additionally, Oman delegates from Ladayn, Oman Aluminium Rolling Company, Madayn and OQ accentuated the availability of primary aluminium, investment incentives and integrated port logistics. This enables larger investment opportunities, making a great opportunity for the Indian manufacturers who are actively looking to expand their business beyond international boundaries with cost efficiencies.

Positioning Sohar Aluminium

Sohar Aluminium, which was formed back in 2004 to undertake a landmark Greenfield aluminium smelter project in the Sultanate of Oman, has been positioned as the regional hub for aluminium production and a major industrial cluster by focusing on the downstream value addition, as well as having access to markets like the US, Europe, Africa and the Middle East.

Upon highlighting the country's investor-centric regulatory environment and push for value-added manufacturing partnerships, Yahya Al Dughaishi, Counsellor at the Embassy of the Sultanate of Oman in New Delhi, said, "Oman today stands as a strategic gateway for Indian industry seeking global integration and long-term growth."

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India's advantage in Oman

Oman has been a key logistics hub in the Arabian Sea-Gulf region for quite some time, giving Indian manufacturers a gateway not just to Gulf markets, but also to Europe and Africa. The trade dynamics really back this up. In 2024-25, the bilateral trade between the two countries reached USD 10.5 billion, with aluminium value chains playing an increasingly vital role.

The recent India-Oman Comprehensive Economic Partnership Agreement (CEPA) adds even more momentum by offering nearly universal zero-duty access, replacing the previous Most Favoured Nation tariffs that ranged from 0 to 5 per cent. This CEPA framework is set to enhance industrial collaboration, especially through joint ventures aimed at the Gulf, European and African markets.

As incentives, India gets the opportunity to secure raw materials at discounted rates, enjoy land incentives and competitive power tariffs. Oman's prime location makes it super convenient to reach major markets with a boosted political and economic stability that the country can count on.

To know more about the global downstream aluminium industry 2026 outlook, book the report “Global ALuminium Industry Outlook 2026".