Khazaen’s Pharma City zone boosted by new $50 million investment

MUSCAT: Avicen Group, a leading player in Oman’s healthcare sector, has announced its maiden debut in the country’s rapidly expanding pharmaceutical manufacturing industry

Last week, the Oman-based group’s subsidiary, Avenzo Pharma, pledged an investment of RO 20 million (approx. $50 million) in the establishment of a pharmaceuticals manufacturing plant specializing in the production of generic drugs at Khazaen Economic City in South Al Batinah Governorate.

Underscoring the government’s support for the initiative, Health Minister Dr Hilal bin Ali al Sabti was in attendance at the signing of a lease agreement for a 20,000 m2 plot on which Avenzo Pharma will set up its project at Khazaen.

Representing the promoters were Nissan Edathum Chalil, Managing Director – Avicen Group, who in a statement said: “This development not only addresses the growing local demand but also underscores Oman’s emerging prominence as a top investment destination in the pharmaceutical sector.”

Avicen Group, described as the second-largest retail chain group in Oman’s healthcare sector, operates a chain of pharmacies and polyclinics across the country. Annual turnover is around $30 million, according to a company post, generated via the import and distribution of pharmaceutical products, equipment and related consumables.

Significantly, the latest investment bolsters Khazaen’s positioning as a destination for pharmaceutical and healthcare related investments as well. Its Pharma City – a dedicated zone for medical-related investments - is already home to over $350 million in pharma-related projects that are in various stages of planning, development and operation.

As of the end of 2023, the Pharma City cluster was ranked only second to Khazaen’s Manufacturing & Industrial Zone as the biggest draw for investment, totaling around $300 million. The largest of these projects – Opal Bio Pharma – is progressing the development of a high-tech health sciences complex with a focus on the production of vaccines and pharmaceuticals. Total investment is around $150 million, with a second phase under planning as well.

Covering an area of 500,000 m2, Khazaen’s Pharma City provides an optimal integrated environment for investors in medical industries ranging from producers of vaccines and drugs, to medical laboratories and advanced research centres. It also comes with a central hub for the import, storage and distribution and medicines and medical equipment.

At least 10 other pharma related projects are in various stages of development at Khazaen’s Pharma City. They include Biogenmix (for the production of insulin), Al-Kanz (for the production of dental implants, and Miran Pharmaceuticals (for medical equipment).