Vale will make a final investment decision on the construction of a low-carbon steel megahub in Oman in 2026.

Brazilian mining company Vale is nearing a final investment decision this year for the construction of a $5 billion low-carbon steel megahub in Oman's Dukm Special Economic Zone, designed to make the country a major producer of environmentally friendly steel and strengthen its industrial diversification strategy, according to media reports.

The project aims to create an integrated low-carbon steel production complex that will take advantage of Oman's strategic location, access to energy resources and logistics infrastructure. This facility is expected to support both domestic demand and exports to global markets.

The steelmaking center in Dukma will contribute to the broader goals of economic diversification of the country by creating valuable industrial capacities outside the oil and gas sector, creating jobs and stimulating processing production activities.

A key component of the project is its low-carbon orientation; the developers plan to introduce advanced steel production technologies that reduce greenhouse gas emissions compared to traditional steel plants.

Broader regional impact

The Doukma megahab is expected to strengthen Oman's position as a manufacturing and logistics hub in the Middle East and North Africa, supporting export corridors through Asia, Africa and Europe. If implemented, this facility could serve as a model for future low-carbon industrial clusters in the region.