Omani Broiler Chicken Expansion Project Set for Q3 Completion: What This Means for Investment Opportunities in Oman’s Poultry Sector
Muscat: A’Saffa Foods, one of Oman’s largest poultry producers, anticipates a 25% increase in broiler chicken production once its significant expansion project is completed in the third quarter of this year.
The publicly-listed company, which operates a fully integrated production facility in Thamrait, Dhofar Governorate, is increasing its annual broiler chicken production capacity from 48 million to 60 million birds. This initiative is part of a strategic plan aimed at addressing the rising demand for locally sourced poultry in Oman and neighboring markets, thereby supporting broader food security goals and reducing import reliance.
“This strategic expansion will enhance production efficiency, optimize operational costs, and strengthen the company’s ability to meet future demand,” stated Chairman Eng Ali bin Hilal al Kuwari in the 2025 Directors’ Report. He added that the project includes both capacity expansion and the optimization of existing facilities, which is expected to positively impact market share and competitive positioning within the poultry sector. The expansion is currently underway and is projected to be completed by Q3 2026.
During 2025, A’Saffa Foods operated at full capacity, with revenue reaching RO 58.23 million, marking an 8.52% decrease from RO 63.66 million in 2024. At the group level, revenues declined by 8.93% to RO 57.05 million, down from RO 62.64 million the previous year.
Despite the drop in revenue, profitability indicators showed significant improvement. The gross profit for the parent company rose 8.78% to RO 16.77 million, compared to RO 15.42 million in 2024. Group gross profit also increased by 8.60% to RO 17.92 million. Net profits exhibited robust growth as well, with the parent company’s net earnings rising 12.73% to RO 6.45 million in 2025, up from RO 5.72 million in the previous year. At the group level, net profit surged 21.46% to RO 7.17 million, a significant increase from RO 5.90 million the prior year.
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A’Saffa Foods’ 25% increase in broiler chicken production signals significant growth potential in Oman’s poultry sector, presenting strategic opportunities for businesses looking to align with the government’s food security initiatives. With the shift toward local production and reduced imports, investors should consider entering or expanding in the food and agriculture market now to capitalize on emerging demand. However, the recent decline in revenue highlights the risk of over-reliance on a volatile market, emphasizing the need for strategic diversification to safeguard investments.
