Muscat, Oman – September 3, 2025 – Oman has unveiled plans to build the Middle East’s first purpose-built green ship recycling hub, a project that marks a significant step in the country’s maritime modernization and environmental strategy.
The initiative, led by the Ministry of Transport, Communications, and Information Technology (MTCIT), will create ship dismantling and recycling facilities designed to meet the highest global environmental and safety standards. According to government announcements, the hub will have the capacity to recycle more than 70 ships annually, producing approximately two million tonnes of low-carbon steel in its initial phase.
Officials said the project will employ advanced “green” technologies to ensure safe hazardous-material handling, controlled dismantling processes, and sustainable waste management. Unlike traditional shipbreaking practices—often associated with environmental damage and unsafe labor conditions—the Omani hub is intended to set a new benchmark in the region by aligning with the requirements of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), which came into force in June 2025.
A concession for the development of the facility has already been awarded, signaling the transition from planning to implementation. An economic feasibility study is also underway to determine the hub’s projected impact on job creation, industrial growth, and the wider economy.
The project forms part of Oman’s broader Vision 2040 agenda, which emphasizes economic diversification, sustainability, and innovation. Alongside the recycling hub, the ministry is also pursuing upgrades to Shannah and Masirah ports, the establishment of new yacht docks, and increased private-sector participation in port operations.
Industry experts note that Oman’s venture could help position the country as a regional leader in sustainable ship recycling, offering shipowners a compliant alternative to South Asian yards where most of the world’s end-of-life ships are currently dismantled. The move comes at a time when global regulations are tightening, with the European Union maintaining a strict “European List” of approved facilities for EU-flagged ships.
While Bahrain’s ASRY has previously gained green certification for ship recycling, Oman’s facility is billed as the first large-scale, purpose-built hub in the Middle East with integrated port infrastructure dedicated to sustainable ship dismantling.
Analysts believe the hub could deliver dual benefits: reducing the environmental footprint of ship recycling while producing high-quality recycled steel that feeds into Oman’s circular economy goals. However, success will depend on international certification, effective waste management, and the ability to attract shipowners seeking safe and transparent recycling solutions.
As freight markets shift and older vessels face stricter efficiency regulations, industry watchers expect an increase in ship retirements over the coming years. With its strategic location along major global shipping lanes, Oman aims to capture a significant share of this future demand, positioning itself as a green recycling leader at the crossroads of East and West.
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