35% available for investment in Oman’s biggest poultry project

Available stake is primarily targeted at local and international private investors

  
Image used for illustrative purpose. Chickens feed from a row of feed bins at C&A Farms in Fairmont, North Carolina, U.S. June 10, 2014.

Image used for illustrative purpose. Chickens feed from a row of feed bins at C&A Farms in Fairmont, North Carolina, U.S. June 10, 2014.

REUTERS/Randall Hill

Oman Food Investment Holding Company (OFIC) — the government’s food sector investment and development arm – has revealed that it is offering an equity stake of up to 35 per cent in its flagship poultry venture, A’Namaa Poultry, slated to commence commercial operation in January 2022.

According to a high-level official of wholly-state-owned OFIC, an affiliate of Oman Investment Authority (OIA) — the country’s integrated sovereign wealth fund — the available stake is primarily targeted at local and international private investors.

“We have a stake of around 35 per cent that we are currently promoting to the private sector,” said Ali al Shihhi, Vice President – Finance, OFIC. “We welcome any discussions and initiatives from (investors) if they are interested in the poultry market in Oman.”

Speaking during an online investment forum organised recently with the support of the Ministry of Commerce, Industry and Investment Promotion, the official said the poultry project – currently nearing completion at Ibri in Al Dhahirah Governorate – forms part of a portfolio of OFIC-backed investments aimed at securing the country’s long-term food requirements.

The project, set up at a total cost of around RO 110 million, covers all aspects of the poultry business, extending from the operation of hatcheries to distribution of white meat products. Output of white meat from the venture is targeted at around 60,000 tonnes per annum.

This volume, together with the outputs of other poultry ventures in operation or under development elsewhere around the Sultanate, will account for 70 per cent of Oman’s domestic requirement of white meat by the year 2030.

Besides OFIC, equity stakes acquired by local Omani based firms include the Civil Service Employees Fund (CSEF), A’Saffa Poultry, and Oman National Investments Development Company (Tanmia).

At full capacity, A’Namma Poultry is projected to generate Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) of RO 13.7 million, while the Internal Rate of Return (IRR) is estimated at 17.5 per cent, according to the official.

Besides serving as a local source of fresh white meat for domestic consumption, A’Namma Poultry will also support the creation of around 1,500 direct and indirect jobs at full production, he added.

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