Essa Al Ghurair Investment will lease a 93,000 sqm plot from Sohar Port and Freezone until July 2043.
Essa Al Ghurair Investment will lease a 93,000 sqm plot from Sohar Port and Freezone until July 2043. — Supplied photo
Dubai — Sohar Port and Freezone and Essa Al Ghurair Investment have entered into a new partnership with the aim of promoting value chain, food processing and logistics support within a growing multi-billion-dollar regional food industry.
Essa Al Ghurair Investment will lease a 93,000 sqm plot from Sohar Port and Freezone until July 2043. The creation of Sohar Food Cluster Company will allow Essa Al Ghurair Investment to focus on the development of value chains, which will be ideal considering the availability of dedicated infrastructure and competitive prices at Sohar; robust food demand in the GCC; and strong financial projections for a number of identified industries and projects.
In addition to this agreement, there will be a purchase of prevailing assets from Sohar Port and Freezone.
The contract was signed by Sultan bin Salem Al Habsi, chairman of Sohar Port and Freezone; Andre Toet, chief executive officer of Sohar; and Essa bin Abdullah Al Ghurair, chairman of Essa Al Ghurair Investment Company.
The contracts were signed at the Dubai World Trade Centre during Gulfood 2015. As the world’s largest food and hospitality show, the signing provided a reminder of the role both companies can play in reducing the cost of getting food in and out of the Gulf.
“We are delighted to welcome Essa Al Ghurair Investment and its Sohar Food Cluster Company to Sohar. As part of our agreement, Sohar Food Cluster Company will have the option to begin developing, either by themselves or through joint ventures with international companies, services and industries that are linked to production, initially at Sohar Flour Mill,” said Toet.
Sohar Food Cluster Company will be located adjacent to the flour mill and sugar refinery at Sohar, and will be close to the grain storage facility that is being built as part of the food security strategy of Oman. As these activities grow, they are expected to contribute to downstream industries and support the growth of dry bulk cargo volumes.
“We are thrilled at this partnership which highlights the growing food demand in a region with a heavy dependence on food imports. With accelerated population growth, this partnership will enhance direct access to Oman and other key export markets in the GCC, as well as Iran, Pakistan, and East Africa,” said Al Ghurair.
— business@khaleejtimes.com