New poultry project in Oman aims for import substitution

When complete, a new project aims to be largest in the Sultanate of Oman, and to double the national rate of self-sufficiency in poultry meat, while other companies in the sector have also announced expansion plans.

Wabeno, Bigstock
Wabeno, Bigstock

When completed, a new project aims to be largest in the Sultanate of Oman, and to double the national rate of self-sufficiency in poultry meat, while other companies in the sector have also announced expansion plans.

At an estimated total cost of OMR100 million (US$260 million), tenders for the construction of the poultry project from Al Namaa Poultry SAOC will be floated after six months, reports Times of Oman.

In the first year of operation at the site in Ibri, production is expected to be 15,000 metric tons of poultry meat, and the project aims to deliver 60,000 metric tons annually by its fifth year.

Semac Consultants is currently working on the detailed design of the facility, and tenders will be opened for construction and installations in the next five to six months.

With construction work taking around 15 months, the unit should be operational in 2019.

Oman Food Investment Holding Company (OFIC) is among the promoters of the joint venture.

OFIC CEO, Saleh Al Shanfari, said that the project covers vertically integrated poultry production from hatchery to slaughterhouse, as well as a feed mill, storage facility, secondary power station, reverse osmosis water treatment plant, and staff accommodation.

“The project will use latest technology and imported equipment and processes creating a benchmark for other players to follow,” he said.

The Omani government set up the project to help meet local needs, reducing import requirements. The country’s self-sufficiency in poultry meat is expected to increase to 68 percent by 2020. In 2014, the rate stood at 34 percent.

Financing for Al Namaa Poultry has been secured from institutions including Meethaq Islamic Banking (the Islamic banking arm of Bank Muscat).

In 2015, Trade Arabia reported that the first moves were made to set up Al Namaa Poultry and the country’s first broiler complex on this scale.

A second parcel of land amounting to 30 square kilometers was allocated to the Al Namaa project by the Ministry of Housing in Dhahirah in July this year, reported Muscat Daily, bringing its total area to more than 60 square kilometers.

Other poultry industry activity in Oman

Earlier this month, Oman’s largest integrated poultry and processed food producer, A’Saffa Foods SAOG, announced its latest expansion plans. According to Gulf Times, these include a hatchery, feed mill and processing plant allowing the firm’s annual output to increase from the current 20 million birds to 40 million or 40,000 metric tons of poultry meat. Finance for the OMR31.5-million (US$82-million) investment was also provided by Meethaq.

Last year, Osool Poultry set up a new broiler breeding and hatching enterprise in Oman. The investment aims to provide a reliable supply of hatching eggs to the poultry industries of Oman and neighboring, Gulf Cooperation Countries.

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