Oman is taking a major step toward sustainable development and environmental responsibility with the launch of a groundbreaking green ship recycling project. Designed to support the nation’s long-term climate goals, the initiative aims to encourage eco-friendly maritime practices while driving economic diversification and industrial growth.

In line with its 2050 net-zero emissions target, Oman plans to establish the Middle East’s first integrated green ship recycling facility. The project will foster sustainable maritime practices and strengthen the sultanate’s position as a regional leader in environmental innovation.

The Ministry of Transport, Communications, and Information Technology (MTCIT) announced that the state-of-the-art facility will be developed in the Khatmat Malaha area of North Batinah in collaboration with Green Wheel Recycling Middle East. A ministry official revealed in an interview with Muscat Daily that a concession agreement is expected to be signed later this month, paving the way for construction to begin.

Green ship recycling involves the safe and environmentally responsible dismantling of end-of-life vessels, following strict regulations to minimise ecological and health risks.

Once operational, the facility will feature a fully integrated port and have the capacity to dismantle and recycle more than 70 ships per year. In its initial phase, it is expected to produce around 2 million tonnes of high-quality, low-carbon steel annually, significantly contributing to the circular economy and the green industrial transition.

“This project not only supports Oman’s 2050 net-zero strategy but also positions the sultanate as a regional hub for innovative green solutions in shipping,” the official said. “It addresses the serious environmental and human health challenges posed by traditional shipbreaking practices around the world.”

The initiative also provides a timely solution for international shipping fleets facing increasing regulatory pressure, particularly from frameworks such as the EU Ship Recycling Regulation and the Hong Kong Convention, which mandate cleaner and safer ship disposal methods.

Beyond its environmental impact, the project is expected to generate around 2,000 direct and indirect jobs, while stimulating growth in secondary sectors such as eco-friendly container manufacturing. The supply of low-carbon steel will further strengthen Oman’s iron and steel industries, significantly contributing to the country’s non-oil GDP.

In a further step toward maritime sustainability, MTCIT highlighted Oman’s goal to become the first Gulf nation to offer ships access to electricity and green fuel while docked. This pioneering initiative will reduce emissions from idling vessels and enhance overall port sustainability.