On January 23, 2026, United Solar announced the successful completion of over $900 million in financing delivery for its 100000 ton per year polycrystalline silicon project located in the Suhar Free Zone of Oman. This green project with a total investment of 1.6 billion US dollars, led by the International Finance Corporation, a member of the World Bank Group, marks the beginning of the first and largest operational polycrystalline silicon manufacturing base in the Middle East. At full capacity, it can support approximately 40 gigawatts of raw material demand for solar modules annually, accelerating the reshaping of the global photovoltaic supply chain.

Middle East Silicon Capital completes key financing

This financing is led by the International Finance Corporation, in collaboration with multiple financial institutions such as the Organization of the Petroleum Exporting Countries Fund for International Development, Abu Dhabi Commercial Bank, Kuwait Ahly Bank, Dubai Commercial Bank, and First Abu Dhabi Bank, providing a long-term loan of $480 million. Local institutions such as Oman Arab Bank have provided over $400 million in term loans and working capital credit. At the equity level, Oman Sovereign Fund Future Fund has increased its initial investment to approximately 260 million US dollars, maintaining its largest shareholder position. At present, the plant has entered the final commissioning stage and is expected to be officially put into production in the first quarter of 2026.

Key Layout of Supply Chain Diversification

After the project is put into operation, the product will be positioned as fully traceable high-end polycrystalline silicon that meets the requirements of the US Foreign Concern Entity, mainly targeting the European, North American, and Indian markets. According to estimates from the International Finance Corporation, the project will add 100000 tons of effective production capacity globally each year, directly creating approximately 1000 high skilled jobs and driving nearly 3000 indirect employment opportunities upstream and downstream. This layout is seen by the industry as an important step in breaking the existing supply chain concentration pattern and enhancing the resilience of the global photovoltaic industry. It will also provide substantial support for Oman to achieve its goals of reducing oil dependence and developing clean manufacturing in the 2040 vision. Keywords: New Infrastructure Latest News, New Infrastructure News Latest News

The Development Path of Coexistence of Opportunities and Challenges

Despite significant progress in the project, the industry still faces overcapacity pressure with polysilicon prices falling more than 70% from their high in 2023. To address the challenges, Union Solar has signed long-term supply agreements with multiple leading component companies and established a blockchain based traceability system to meet compliance requirements in the European and American markets. The management of the company revealed that the second production line with an annual output of 100000 tons has completed preliminary preparations, and is currently evaluating the feasibility of building a silicon wafer and an annual output of 5 GW module factory in Oman. It is expected that the final investment decision will be made in 2027, steadily advancing towards the goal of building an integrated photovoltaic industrial park.Editor/Gao Xue