Salalah:Muscat Salalah Free Zone has entered into a usufruct agreement with Advanced Packaging Company, a branch of Alesayi Holding Company from Saudi Arabia. This partnership aims to establish an industrial project dedicated to producing carbonated beverages, juices, and energy drinks, with an investment amounting to RO 3.85 million ($10 million).
According to Oman News Agency, the agreement was formalized by Dr. Ali bin Mohammed Tabuk, CEO of Salalah Free Zone, and Mohammed Ali Alesayi, Chairman of the Board of Alesayi Holding Company. The signing took place at the headquarters of the Public Authority for Special Economic Zones and Free Zones in Muscat, witnessed by Qais bin Mohammed Al Yousef and other officials.
The project will be constructed in Salalah Free Zone, covering an area of approximately 25.5 thousand square meters. This includes acquiring an existing facility on 15,505 square meters of land and allocating an additional 10 thousand square meters for future expansion.
Dr. Tabuk emphasized the project as a strategic addition to the food and beverage sector, aligning with Oman Vision 2040 by diversifying economic activities and enhancing non-oil sector contributions. He noted the project supports the Zone's strategy of utilizing existing assets for new productive endeavors, thus facilitating quicker operational commencement and efficient infrastructure use.
The allocation of additional land aims to provide flexibility for production line development and expansion plans. Dr. Tabuk assured continuous support and services from Salalah Free Zone to facilitate the project's implementation and benefit from the Zone's incentives.
Mohammed Ali Alesayi stated that the factory targets both the Omani market and exports to Yemen and Africa, marking the company's third facility following two in Saudi Arabia. Production is expected to start in six months, with job creation anticipated. The company is also considering expanding with another factory in Muscat for cardboard box manufacturing and a third beverage production line in Oman.
The project is poised to enhance local value by supporting beverage industry supply chains and engaging local services in transport, storage, packaging, and logistics, while fostering economic linkages within Salalah Free Zone to boost the competitiveness of locally manufactured products.