$1.6 Billion Polysilicon Project in Oman Launched with World Bank Financing

August 16, 2025
The International Finance Corporation (IFC), the private-sector arm of the World Bank, has approved a financing package of $250 million to support a landmark polysilicon manufacturing project in Oman, with a total investment estimated at $1.6 billion. The decision passed despite opposition from the U.S. representative and abstentions from three other board members, highlighting growing geopolitical tensions around China’s role in the industry.

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Financing Details and Project Scale

• A $200 million loan.
• A $50 million equity investment.
• Construction of a plant in Sohar Free Zone with an annual capacity of 100,000 metric tons of polysilicon.
• Total project size: $1.6 billion.

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Key Stakeholders

• Chang Longgen, U.S. citizen, Chairman, and former CEO of a Chinese polysilicon producer.
• The Omani sovereign wealth fund.
• Chinese investment firm IDG Capital.

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🇺🇸 U.S. Opposition and Geopolitical Sensitivities

• The U.S. views the project as an extension of Chinese influence in the global polysilicon market.
• Core concern: global overcapacity and its impact on prices.
• In parallel, Washington has invested domestically, including a $325 million federal grant to Hemlock Semiconductor in Michigan to boost U.S. semiconductor supply chains.

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Strategic Importance for Oman

• At full capacity, the plant will produce enough polysilicon to manufacture solar panels generating 40 gigawatts of power annually.
• The project positions Oman as a regional hub in solar supply chains.
• High-purity polysilicon is also vital for semiconductor manufacturing.

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Global Market Challenges

• The polysilicon industry is facing overproduction, pushing Chinese firms to consider partial shutdowns.
• The project’s success in Oman depends on maintaining supply-demand balance to avoid price drops and shrinking margins.

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Oman’s Vision: Economic Diversification through Renewables
The initiative marks a significant step for Oman in diversifying its economy and attracting major investments in the renewable energy sector, aligning with Oman Vision 2040.