Business

Oman plans major Agri-Industrial Food City in Najd

Food security: Project to serve as hub for agricultural cultivation and food processing all-year round

 
A first-of-its-kind agri-industrial city centred around large-scale crop cultivation and food processing is planned for development in the Najd area of Dhofar Governorate in the Sultanate of Oman.

The initiative is being spearheaded by Oman Food Investment Holding Company (Nitaj), the food sector investment arm of the Omani government, represented by Oman Investment Authority (OIA). Also supporting the landmark project is the Ministry of Agriculture, Fisheries and Water Resources.

“This initiative aims to establish an integrated agricultural-industrial food city through which the country can reduce the percentage of the food gap for strategic crops, in addition to creating an agricultural area in Najd containing all the facilities (farming, industrial and logistical) to provide the country with various fresh and manufactured crops, as well as serve a model in the future to implement in other cities in different (governorates),” said Nitaj in an explanatory note.

As a first step in the implementation of this ambitious venture, Nitaj has invited consultancy firms to submit their qualifications in response to a competitive tender for a contract to undertake a feasibility study into the Agri-Industrial Food City project. The successful bidder will be required to provide advisory services encompassing the technical (master-planning as well), legal, commercial (marketing) and financial aspects of the project.

According to Nitaj, Najd’s advantageous geographical location and climate characteristics makes its “one of the most promising agricultural areas” in the Sultanate of Oman.

Proposed to be located in Al Mazyouna, the project will also unlock a wide array of socioeconomic benefits for the country, among other beneficial knock-on effects, it points out.

“The initiative is expected to have several effects, most notably: providing job opportunities for Omanis, creating added value for the crop that will be produced in the City, provide contract areas for cultivate and manufacture of different food products for small and medium enterprises...,” it said.

In essence, the project will serve as a hub for agricultural cultivation and processing as a year-round economic activity, Nitaj stressed.

In addition to large-scale crop cultivation, Nitaj envisions the potential for investments in food processing and added value factories, such as ketchup and fruit drying plants etc), local manufacturing of agricultural and farming implements and tools, and activities focusing on agricultural inputs, such as seeds, irrigation items, and so on.

Crops targeted for cultivation in the new cluster will include those that can address the current food gap and are suitable for Najd’s environment. The area has been described as ideal for the cultivation of (i) Fruit crops (citrus, mango, banana); (ii) Vegetable crops (potatoes, onions, garlic, tomatoes, zucchini, okra, eggplant...) and (iii) Field crops ((wheat, sunflower, corn, canola...)

“It is expected that this city will attract various types of advanced and newly innovative technologies in the fields of agriculture and related industries,” the state-owned entity further noted.

Importantly, as an integrated city, the new agro-centric industrial hub will also pull in investments to support the provision of educational, healthcare, shopping, retail and other commercial services, says Nitaj.

The deadline for submission of qualifications is April 26, 2023.