Bank Muscat’s Meethaq, A’Saffa Foods sign OMR32m agreement to fund expansion

Business Sunday 01/October/2017 17:08 PM
By: Times News Service
Bank Muscat’s Meethaq, A’Saffa Foods sign OMR32m agreement to fund expansion

Muscat: A’Saffa Foods, Oman’s largest fully integrated poultry and processed food producer, and Bank Muscat’s Islamic Banking window Meethaq, recently signed an agreement to successfully conclude the financing facilities of OMR31.5 million to finance the company’s robust expansion plans, which will continue to make it the largest fully integrated poultry project in the Sultanate.
The massive expansion project will double the production capacity of A’Saffa Foods from the current capacity of 20 million birds per annum production to 40 million birds per annum; and will comprise the addition of 10 farms with 90 poultry houses, in addition to a hatchery, feed mill, processing plant, and other utilities.
“In keeping with the Government’s vision of enhancing food security and economic diversification — we are pleased to join hands with Meethaq for the long-term financing of the expansion project, which will make a significant contribution to Oman’s food sufficiency. With an annual production capacity of 40,000 tonnes of chicken meat per annum, the project will have a far-reaching impact on meeting the growing demand of A’Saffa products in the Sultanate and beyond; and will also help in the generation of employment opportunities,” said Sheikh Rashid Saif Mohammed Al Saadi, chairman of A’Saffa Foods.
“We would like to thank the Ministry of Commerce and Industry, regional municipalities, the Ministry of Housing, Ministry of Agriculture and Fisheries, Meethaq Islamic Banking, and related government entities for their support to the expansion project”, said Dr Nasser Zahir Nasser Al Maawali, CEO of A’Saffa Foods.
“Being market leaders in the Sultanate, A’Saffa Foods has always been committed to proactively improving its performance year on year. Given our robust expansion plans, we will continue to focus on production and operational excellence, brand variation and overall growth and development; while creating long-term value for our stakeholders, and ensuring sustainability in all our operations.”
Dr Nasser Zahir Nasser Al Maawali and Sulaiman Al Harthy, Deputy Chief Executive Officer from Meethaq Islamic Banking signed the financing agreement at a ceremony that was held at the Bank Muscat Headquarters in Seeb, in the presence of Sheikh Rashid Saif Mohammed Al Saadi, CFO - Rafique Chaudhary; Head of Marketing and Sales – Sidhartha Lenka, and senior management from both A’Saffa Foods and Bank Muscat.
“Having a total expansion outlay of RO 45 Million, A’Saffa Foods’ expansion project’s key objectives include promoting food security, increasing Omanisation and export percentage, improving business environment, as well as stimulating the economy of the country by reducing dependence on the Oil and Gas sector. In the Dhofar governorate in particular – the project will help create jobs and support training programmes for Omanis,” said Rafique Chaudhary.
“Consumer demand for protein, especially chicken, is increasing so we’re investing in projects that build on our strengths, core competencies and expertise, expand our capabilities, increase our capacity and scale up. Given the market environment, A’Saffa Foods is proud to be a leading domestic poultry producer with a market share that is steadily growing. Expansions like these, will position us to grow further, while supporting our customers in particular, and the community at large,” Sidhartha Lenka added.