Oman’s Agro-Food Sector Expansion: Impact of Exporting to 35 Countries on Local Businesses
Muscat: Oman is making significant advancements in its agro-food sector, demonstrating impressive progress in production, exports, innovation, and value chain expansion.
These initiatives are largely driven by the Oman Food Investment Holding Company (Nitaj), the food sector development arm of the Oman Investment Authority (OIA). As a result, Oman has broadened its market reach, fostered technological advancements, and bolstered support for local businesses.
According to the recently released 2023 Annual Report by OIA, products from Nitaj subsidiaries have successfully reached over 35 countries globally, highlighting the international demand for Omani goods.
A notable success story is the Al Morooj Dairy Project, which has significantly expanded its contract farming efforts. The number of livestock breeders under contract surged from 457 in 2022 to 924 in 2023. This expansion paved the way for the export of camel milk to Saudi Arabia, marked by a substantial agreement with Sawany Saudi Company to export 15,000 liters per day.
Additionally, the Oman Flour Mills Company, a Nitaj subsidiary, has been recognized for its excellence in the industry. In 2023, the company was awarded the title of the strongest Omani brand in the food and beverages category, establishing it as a trusted name in the market.
Oman Flour Mills has also embraced technological innovations, notably through the installation of the E-Robot system in its feed mill, enhancing production capabilities and operational efficiency. This technological commitment underscores the company’s goal of maintaining a competitive edge. The company was further honored with the innovation award for its impactful projects in economic development, along with two institutional excellence awards: the commercial award and the factory of the year award.
The agricultural sector in Oman is also witnessing notable advancements. The Nakheel Oman Development Company has commenced operations on its organic fertilizer project, promoting sustainable agricultural practices. The company has successfully launched its products in eight new international markets, including Russia, Peru, Iraq, Libya, Egypt, Iran, Qatar, and the UAE, showcasing the global appeal of Omani dates.
The completion of the Lemon Grove Project, involving the planting of 100,000 trees, signifies a key development in Omani agriculture. This initiative aims to boost the self-sufficiency of lemon production from 30% to 60% and explore opportunities for carbon credits in collaboration with Petroleum Development Oman.
Moreover, the launch of the "Rumana" (pomegranate) project in Al Jabal Al Akhdar highlights Oman’s commitment to supporting small and medium enterprises (SMEs). This project aims to enhance the agricultural tourism sector by establishing 45 agricultural tourism rest stops, which will support 38 SMEs and promote local entrepreneurship and tourism.
Oman remains focused on local employment, achieving an Omanisation rate of 74% within the group, reflecting the nation’s dedication to integrating Omani nationals into the workforce.
Preliminary approval has also been granted for shareholders to participate as investors in the Al Namaa Poultry Project and the Al Bashayer Meat Project, signaling future growth and investment opportunities.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s robust advancements in the agro-food sector present both opportunities and challenges for businesses. The expansion of exports and technological innovations represents a significant chance for investors and entrepreneurs to tap into growing international demand and enhance local production capabilities. However, as competition escalates, stakeholders must be strategic in fostering partnerships and leveraging technological integration to maintain their market foothold.
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