More facilities to industrialists - Sultanate marks ‘Omani Industrial Day’ - RO 5m Salalah Macaroni Factory opened - Priority for success of Salalah free zone - Existing industrial areas to be expanded - Private sector role in development sought
The government, in response to the requirements of the industrial growth and balanced regional development, seeks to introduce a number of facilities to promote the existing infrastructure in different parts of the Sultanate to meet the needs of the Omani and foreign industrial investors and takes into consideration achieving a balance between the regions in terms of industrial development.

This was said by Maqbool bin Ali Sultan, Minister of Commerce and Industry, while meeting industrialists from Dhofar as part of the ‘Omani Industrial Day,’ at Crowne Plaza Salalah yesterday. He noted the development of the free zone in Salalah saying that the government attached great care to complete the basic infrastructure and necessary utilities to ensure success of the free zone.

The infrastructure for the first stage is almost complete and 90 per cent of land for the first stage of the existing projects have been already allocated. The second stage, which is in the planning and preparing process, is expected to absorb light and medium industry projects. As for the second stage, based on developing another site will be allocated for light, medium commercial investments, as well as logistical and technological services.

Maqbool said efforts have been made to develop the free zone in Al Mazyounah and operate it. The tender for the technical studies has been already offered. The design and engineering studies for the first stage of the zone are expected to be complete by the end of this month. The minister pointed out that many achievements were made in Sohar Industrial Port. In addition to the industrial port, many major industrial projects have been completed and others are about to be completed soon. Large area has also been allocated for the free zone near the port to set up industrial and service projects. The free zone is expected to lure foreign investment.

As for the industrial area at Duqm Port, he pointed out that the port and the dry dock are currently under construction. The special designs for the industrial area have been completed and it is expected to be an important area for mineral and oil-based industries. Moreover, the existing industrial areas in Al Rusayl, Sohar, Nizwa, Raysut and Al Buraimi have been extended.

Al Buraimi Industrial Estate project and additions for Sohar Industrial Estate have been completed. Layouts for the non-developed stages at Raysut Industrial Estate have been prepared and there are plans to set up industrial estates in new strategic areas in Ibri and Samayil estates.
Co-ordination is under way for new industrial estates and will be unveiled at the suitable time.

He added that “besides the efforts undertaken by the government to set up adequate infrastructure for the industrial development and the many projects set by it, the private sector also plays a role in encouraging investment in the existing projects in the other industrial estates”.
He hopes that the private sector plays an active role in industrial investment and small and medium size industries with much emphasis on food processing industries as they are closely linked to food security which become very important in the last period due to the hike in the prices of foodstuff in the international markets.

He pointed out that the Sultanate has much potential for agricultural industry, such as large quantities of fish and dates which may be manufactured and availed for both local and foreign markets. Where some products are available in their seasons, there is a good opportunity to manufacture and process them. This will achieve a number of economic and social gains, such as employing a large number of Omanis, transfer of technology and contributing to self-sufficiency, increasing exports and income.

The minister also said Omanisation and employment of nationals are two of the main strategic aims which are accorded the Royal care of His Majesty Sultan Qaboos. The industry sector, especially SMEs, can contribute to creating employment opportunities for the youth. The private sector is responsible for employing and training of these youths and should also be patient while fresh graduates acquire the required practical skill and knowledge.

The private sector should also consider training and employment of youths which is a social and national duty in which they proudly take part in. He added that some of the existing factories have stumbled and encountered some difficulties to the extent that some of them stopped operation.

The existence of these factories from the beginning came in response to the incentives, facilities and support provided by the government. “We, at the Commerce and Industry Ministry, are aware of the stumbling industries. Therefore we try to diagnose the problem and provide every possible and technical support for the factories that can survive. The government cannot continue providing support to factories that are not economically feasible.

“The major successful investment and industry companies should consider merging some of the stumbling factories and benefit from their assets to serve the interests of both the major successful companies and the stumbling projects. On the other hand, this will contribute again to achieving more growth”.

After briefing on the developments related to the planned policies and programmes in the field of industrial development as well as the already implemented programmes, Maqbool listened to the views and proposals made to address the problems and achieving the prospective aims of the industrial development.

The minister toured an exhibition held on the sidelines of the occasion. The exhibition displays products of 14 Omani companies. The minister pointed out that yesterday’s meeting comes as part of the celebrations of the Omani Industry day and in continuation of rooted traditions based on the care accorded to the Omani industry by His Majesty Sultan Qaboos. He affirmed that this year’s celebration in Salalah reflects the keenness of the government to maintain communications with industrialists in the regions and governorates of the Sultanate.

MACARONI FACTORY OPENED: As part of the ‘Omani Industry Day,’ the Salalah Macaroni Factory was opened at Raysut Industrial Estate yesterday under the auspices of Maqbool bin Ali Sultan. Shaikh Ahmed bin Abdullah al Rowas, Chairman of the company, in a speech said that the project’s idea was materialised after a series of studies by the Salalah Flour Mills to put an added value to its flour products. Most of the factory’s products will be exported, he added.

“The project costs 5 million rials. Last year, the factory’s output stood at 28,000 metric tonnes, whereas its capital returns stood at 14.5 per cent,” he said. “The shareholders decided however to raise the company’s capital by 40 per cent and adding another production line to produce macroni,” he noted.

“FAFA, one of Italy’s leading manufacturers of macroni, was selected to supply the production line with an output of 5 tonnes per hour. This is being the fourth production line of its type to be installed at the world level,” he added. The chief guest toured the factory, viewed the manufacturing stages, was briefed on the factory’s operations and its different products and quality standards adopted in the factory.

The Salalah Macaroni Factory is an Omani-Yemeni joint venture with a capital of 2.5 million rials. The Salalah Flour Mills owns 64 per cent stake of the company’s capital. The factory, which was built on a 24,000 square metre space, was designed to accommodate four production lines. The first gas-operated line produces 36,000 tonnes of long macaroni. The commercial production of the factory started in 2009.

MoU ON AL MAZYOUNAH FREE ZONE: A memorandum of understanding (MoU) was signed yesterday at Raysut Industrial Estate with Golden Hala Trading and Contracting to develop the infrastructure for free zone in Al Mazyounah Free Zone. The MoU was signed by Hilal bin Hamad al Hasani, CEO of the Public Establishment for Industrial Estates (PEIE), and Dr Salah Khalifa al Gary, Chairman of Golden Hala Co, in the presence of Maqbool bin Ali Sultan.

PEIE’s CEO said that PEIE has sought to develop Al Mazyounah Free Zone in line with free zones’ best standards and establish effective partnership with the private sector to develop the zone. “PEIE has been keen not to operate the free zone, unless the legal framework regularising investment and commercial activities have been established in the zone, as well as regularising relationship between the investors and government establishments,” he added.

“Al Mazyounah Free Zone’s location is important for businessmen in the Sultanate, Yemen and the GCC states,” he said. “Trade indices suggest that the GCC states are major strategic partners to Yemen. The average volume of trade exchange in the past three years almost touched $6 billion per annum, (33 per cent) over Yemen’s total trade exchange with the rest of the world,” he added further.

Golden Hala chairman said the company has taken the industrial investment initiative in the Sultanate owing to its good location, being one of the most attractive regions for Arab investment. It has also built Raysut Pre-Mixed Concrete, Block and Interlock Factories. The company has also developed an area of 300,000 surface metres at ‘Jawharat Salalah’ project, he added.

“Having signed the MoU with PEIE, Golden Hala will develop Al Mazyounah Free Zone and complete the project on line within the given time-frame and to world-class standards. Capitals and international firms will be invited to make Al Mazyounah a world economic hub,” he added. Earlier, Maqbool launched Al Mazyounah Free Zone Logo. — ONA