Muscat - A regional fund, for the growth of aquaculture, set up with the backing of private as well as sovereign and GCC investment funds, has earmarked US$80mn (AED293mn) for an aquaculture farm in Oman. Once operational, the farm is expected to produce 13,000 tonnes of fish annually, of which 10,000 tonnes would be giant tiger prawns.
Initiated by Emirates Star Fisheries, the Dubai, Food Security Growth Fund was initially planned as a private fund to support fish farming activity in the coastal Arabian Peninsula in particular and around the world.
"However, there has been a good response from the local governments, high net worth individuals, sovereign funds, GCC investment funds as well, and so far we have targeted US$150mn which is likely to grow in the years to come," Prathapachandra Shetty, executive director, Emirates Star Fisheries, told Muscat Daily.
Talking about the significance of the fund, Shetty said the
region imports about AED100bn worth food every year. "Vast coastlines (Yemen about 1,906km and Oman 2,092km) with little or no human activity make it suitable for aquaculture activity. The population in coastal areas is very thin making it easy to develop large aquaculture facility including off-shore farming."
He added that farming of shrimps in the region indicates viable financial proposition, apart from food security. "Several species of shrimp are naturally present in the sea in many zones. The internal rate of return (IRR) is from 20-36 per cent, with payback period from three to five years," he said.
"We have requested the Omani authorities to allot us 4,000ha, selected from the 'Atlas of the Suitable site for Aquaculture Project in Sultanate of Oman'," said Shetty.
He is hopeful that production will start in 2016 with the farming of 2,500 tonnes of tiger prawns and 600 tonnes of seabream and yellowfin tuna, while it will gradually increase to 10,000 tonnes of tiger prawns and 3,000 tonnes of seabream and yellowfin tuna by 2018.
The expected produce could really transform the industry in Oman and in the region.
"Oman's national aquaculture policy has evolved in the last couple of years recognising the potential and the food security issue and now it plans to increase production to 200,000 tonnes in the next decade. Although we agree that aquaculture in Oman and in the region is in its initial stages, it can surely transform the region into a food basket, if planned projects are implemented with sustainable production," he said.
Shetty said that his company has also acquired 11,000ha in Yemen for an aquaculture project, and the concept, design and layout, is ready for implementation. "However, the project is on hold due to the current political situation and we are waiting to commence as soon as things improve."
© Muscat Daily 2014
