IFC Approves Funding for USD-1.6bn Polysilicon Project in Oman

Wedoany.com Report-Aug. 11, The International Finance Corporation (IFC) has approved up to USD 250 million in financing for United Solar Polysilicon’s (USP) polysilicon production project in Sohar, Oman. The package comprises a loan of up to USD 200 million and a USD 50 million preferred equity investment, according to IFC’s website.

The approval followed a voting process, with the US executive director expressing opposition, as reported by Reuters sources. Executive directors from Germany, the Netherlands, and Nordic countries abstained. The project is led by USP’s founder, Zhang Longgen, previously CEO of Daqo New Energy.

Located in the Sohar Port and Freezone, the facility will produce 100,000 tonnes of polysilicon annually, with a total investment of USD 1.6 billion. The plant, the first of its scale in the Middle East, had its foundation stone laid in 2024.

In October 2024, the Future Fund Oman, under the Oman Investment Authority, invested USD 156 million in the project. This initiative is set to bolster polysilicon production, contributing to the global solar energy supply chain.