Saudi Arabia’s Advanced Packaging Company is moving ahead with a $10 million investment to establish a beverage manufacturing facility in Salalah Free Zone, adding fresh momentum to Oman’s food and drink manufacturing sector. The company, which is affiliated with Alesayi Holding Company, signed a usufruct agreement for the project in Muscat on Monday. The planned plant will produce soft drinks, juices and energy drinks, with operations expected to support local supply chains and create direct and indirect jobs. Officials say the investment fits with wider efforts to expand industrial activity in free zones and raise the contribution of non-oil sectors to the economy.
Agreement signed in Muscat
The deal was signed by Dr Ali bin Mohammed Tabouk, chief executive of Salalah Free Zone, and Mohammed Ali Alesayi, chairman of Alesayi Holding Company. The signing took place at the headquarters of the Public Authority for Special Economic Zones and Free Zones, in the presence of OPAZ Chairman H E Qais bin Mohammed al Yousef and representatives from both sides.
Factory site and production plans
The project will occupy around 25,500sqm. This includes an existing facility on a 15,505sqm plot, along with a further 10,000sqm set aside to support operations and allow for future expansion. The plant is expected to begin production within six months, becoming the company’s third factory after its two existing facilities in Saudi Arabia.
Export and market ambitions
The Salalah operation is intended to serve demand in Oman while also supporting exports to Yemen and African markets. The company is also studying further investment in Oman, including a possible cardboard box manufacturing facility in Muscat and the relocation of another beverage production line to the country.
Boost for local supply chains
Free zone officials expect the project to strengthen Salalah’s industrial base and encourage growth in related services such as logistics, storage, packaging, transport and maintenance. By linking manufacturers with local service providers, the investment is also expected to improve the competitiveness of products made in Oman and broaden the economic benefits generated by activity in the zone.
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