Oman to build the Middle East’s first green ship recycling facility

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Media Article

Oman to build the Middle East’s first green ship recycling facility

9, September 2025

Oman has started work on a new eco-friendly ship recycling facility in Khatmat Malakha. The move is a first for the Middle East, signalling the country’s commitment to sustainability in the maritime industry.

The new facility will be developed in Khatmat Malakha (North Batinah) through a partnership between the Ministry of Transport, Communications, and Information Technology (MTCIT) and Green Wheel Recycling Middle East. Construction has kicked off this month.

The facility will have the capacity to dismantle and recycle more than 70 ships per year. During its initial phase, it is expected to produce around 2 million tonnes of high-quality, low-carbon steel annually. This steel will be supplied to Oman’s iron and steel industries, contributing to the country’s non-oil GDP growth and supporting the circular economy.

Green ship recycling is a growing trend in the maritime industry, as the sector works towards sustainability goals. The process involves dismantling end-of-life vessels in an environmentally responsible way, following strict regulations to protect both the environment and human health. This approach contrasts with traditional shipbreaking methods, which often pose serious risks.

“Green ship recycling is an environmentally responsible process for dismantling end-of-life vessels, prioritizing safety, hazardous material management, and resource recovery, in line with international regulations to minimize ecological and health risks,” explained Anu Chaudhary, Partner and Global Head of ESG Consulting at Uniqus.

The project is expected to create approximately 2,000 direct and indirect jobs and stimulate related industries.

Authorities say the facility will not only help Oman meet its climate goals but also position the sultanate as a regional leader in innovative green maritime solutions.

Meanwhile, Oman also plans to become the first Gulf country to provide docked ships with electricity and green fuel. “This pioneering initiative will help reduce emissions from idling vessels and enhance overall port sustainability,” said Chaudhary.

Oman is not alone

Elsewhere in the Middle East, other countries are also exploring the establishment of ship recycling yards. Earlier this year, Maersk signed a memorandum of understanding in Egypt to explore green ship recycling as part of the government’s efforts to reduce reliance on imported scrap metal. The planned demolition yard will be located at Damietta Port, west of Port Said on the Mediterranean coast.

 

Source: Consulting ME

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