Chinese firms to set up shops for solar production in Oman, UAE

Two Chinese firms are advancing two separate solar production projects in the region with a combined investment ticket of USD 805 mn, according to statements here (pdf) and here. The first project will see China’s Almaden invest USD 240 mn to establish a solar photovoltaic glass production facility in the UAE, while the other will see Chinese JA Solar develop a USD 546 mn solar production facility in Oman.

#1- Almaden’s UAE project: The facility — to be located in Abu Dhabi’s Khalifa Industrial Zone (Kizad) — will have an annual production capacity of 500k tons, and will feature a 1.6k ton melting furnace and several processing lines. Construction is expected to take 18 months, and the investment will come from external sources and self-finances, according to the statement. Almaden will set up a subsidiary responsible for the project called Almaden Glass Industries.

REMEMBER- Chinese companies are eyeing the UAE: Earlier this year Trina Solar was on the hunt for a partner to help it set up a USD 5 bn integrated solar power generation chain in the UAE.

#2- JA Solar’s Oman project: The project — planned in the Freezone’s second phase — is slated to begin operations by 1Q 2026, with an annual production capacity of 6 GW of solar cells and 3 GW of solar modules.

More solar for Sohar: The Omani freezone is also getting another major solar production facility, with an under-development USD 1.6 bn polysilicon plant by United Solar Group. The plant — planned to have an annual capacity of 100k tons — is backed by the International Finance Corporation and the Riyadh-based international investment platform Ewpartners.

Not JA Solar’s first in the region: The Chinese manufacturer partnered with UAE’s Global South Utilities last year to establish two factories in Egypt to produce solar cells and panels. This was reported to include a USD 138 solar cell plant and a USD 75 mn solar panel plant—both of which are set to have a production capacity of 2 GW.

IN CONTEXT- Trade war could be a boon for us: The MENA region could emerge from the China-US trade war as a solar production hub as China and Southeast Asian green producers shift operations abroad to evade tariffs. The US is also expected to turn to the region for green tech as developers look to source cheaper imports after the US blasted solar producers from China, Vietnam, Malaysia, and Thailand with up to 3,500% duties. MENA’s robust local demand for solar products is also expected to spur production capacity as the region looks to hit about 100 GW of solar capacity by 2029.