Muscat – Saudi Arabia’s Advanced Packaging Company, affiliated with Alesayi Holding Company, will invest $10mn to establish a beverage production facility in Salalah Free Zone under a usufruct agreement signed on Monday.

The agreement was signed by Dr Ali bin Mohammed Tabouk, CEO of Salalah Free Zone, and Mohammed Ali Alesayi, Chairman of the Board of Alesayi Holding Company, at the headquarters of the Public Authority for Special Economic Zones and Free Zones (OPAZ) in Muscat.

H E Qais bin Mohammed al Yousef, Chairman of OPAZ, and officials and representatives from the free zone and the investing company also attended the signing.

The project will cover approximately 25,500 sqm, comprising an existing facility on a 15,505-sqm plot and an additional 10,000 sqm allocated to support operations and future expansion. The facility will produce soft drinks, juices and energy drinks.

The investment is expected to strengthen the food and beverage sector in Salalah Free Zone, support related supply chains and create direct and indirect employment opportunities as the project progresses towards full operation.

Dr Tabouk said the agreement was part of the free zone’s efforts to attract high-quality industrial investments, diversify economic activities and increase the contribution of non-oil sectors to the national economy, in line with Oman Vision 2040.

He said the project would strengthen the Salalah Free Zone’s industrial base and support the development of the food and beverage industry, which offers growth opportunities in local and regional markets, as well as potential for exports and access to new markets.

Alesayi said Advanced Packaging Company has aimed to serve the Omani market and export to Yemen and African markets through its factory in Salalah Free Zone.

He said the facility would be the company’s third factory, following its two existing factories in Saudi Arabia. Production is expected to begin within six months, with the project generating direct and indirect employment opportunities.

The Saudi company is also considering establishing another factory in Muscat to manufacture cardboard boxes and relocating a third beverage production line to Oman.

The project is expected to increase local added value by supporting supply chains linked to beverage manufacturing and using local services in transportation, storage, packaging, maintenance and logistics.

It also supports Salalah Free Zone’s efforts to develop an integrated industrial and logistics ecosystem by strengthening links between companies operating in the zone and local service providers. These linkages are expected to improve the competitiveness of locally manufactured products and widen the economic benefits of investment.