OFM Expands Food Subsidiary Stake: What This Means for Investors and Business Growth in Oman
MUSCAT — Oman Flour Mills Company SAOG (OFM) has taken a major step to reinforce its leadership in Oman’s food manufacturing sector by signing a share purchase agreement that will significantly boost its ownership stake in Arabian Food Production Company SAOC.
In a disclosure to the Muscat Stock Exchange and the Financial Services Authority on Sunday, OFM announced that its wholly owned subsidiary, Atyab Investments LLC, entered into an agreement on February 13, 2026, to acquire the entire 33.34% stake held by Gulf Japan Poultry Farm in Arabian Food Production Company.
Currently, Atyab Investments holds 33.33% of the issued shares of the food producer. Upon successful completion of this transaction and the fulfilment of all agreed conditions, its ownership will increase to 66.67%, granting OFM a controlling interest. The company confirmed that any significant updates related to the transaction’s completion will be disclosed as required by regulatory authorities.
This acquisition aligns with OFM’s broader strategy to enhance vertical integration throughout the food value chain and bolster domestic food production, supporting Oman’s long-term food security goals. OFM, one of Oman’s largest integrated food groups, operates under the newly restructured and rebranded Oman Food Capital—formed from the merger of Oman Food Investment Holding Company (Nitaj) and Fisheries Development Oman—and is affiliated with the Oman Investment Authority.
In recent years, OFM has expanded its investment portfolio both within Oman and internationally to secure grain supplies, diversify sourcing channels, and strengthen supply-chain resilience. Notable initiatives include the establishment of Oman-Australia Limited, which collaborates directly with Australian farmers to secure wheat shipments crucial for Oman’s strategic grain reserves. Additionally, OFM launched Atyab International Services in Uzbekistan, offering laboratory testing and quality assurance to support import controls and regional food exports.
These efforts are part of a long-term vision to improve food product quality, broaden global sourcing networks, and support the national economy by ensuring steady access to essential commodities. OFM has also invested in feed milling, frozen bakery production, and is exploring opportunities for further regional growth, such as bakery operations in Saudi Arabia and potential agricultural partnerships abroad.
Industry experts observe that increasing OFM’s stake in Arabian Food Production Company will enable deeper operational integration within its food manufacturing network, potentially enhancing production efficiency and competitive strength. Greater ownership will also facilitate faster new product development and capacity expansion in high-demand areas of Oman’s food market.
This strategic move underscores OFM’s commitment to advancing Oman’s food industry resilience and self-sufficiency.
Special Analysis by Omanet | Navigate Oman’s Market
Oman Flour Mills’ move to secure a controlling stake in Arabian Food Production underscores a strategic push towards vertical integration and enhanced food security, positioning the company as a dominant player in Oman’s food manufacturing sector. This creates opportunities for increased operational efficiency and market competitiveness, while signaling to smart investors the value in supporting companies aligned with Oman’s national food security goals. Entrepreneurs should consider leveraging synergies in the food value chain and exploring partnerships that complement the scaling and diversification trend led by OFM.
