The Sultanate of Oman has announced plans to merge three state-owned companies into one as the country seeks to attract additional investment to the sector.
Oman’s Investment Authority (OIA) said the new company, Fisheries Development Oman, will be formed from the merger of three entities: Blue Water, Al Wusta Fishery Industries, and Oceanic Shrimp Aquaculture. In the announcement, first reported by Muscat Daily, the OIA said the move was being made to expand both its inland and marine fisheries production.
The merger resulted from a directive from the country’s leader, Sultan Haitham bin Tarik, who appears keen on improving Oman’s total fish capture from the current 347,600 tons and scaling up aquaculture output from 77 tons, according to FAO estimates.
Furthermore, OIA said Oman, with an estimated annual per capita consumption of fish of 28.7 kilograms, is carrying out an evaluation of the performance of state-owned firms to gauge their viability before a decision is made either to merge them, carry out restructuring, or disband them altogether so as to enhance economic efficiency.
“The consolidation of these companies comes from the close cooperation between OIA and the Ministry of Agriculture and Fisheries, a positive example of the government institution’s cooperation with the investment authorities in the sultanate and will create a positive incentive for private sector investors,” OIA’s said.
Under Fisheries Development Oman the boards of management for Blue Water, Al Wusta Fishery Industries, and Oceanic Shrimp Aquaculture will be dissolved and a new board will be constituted to combine and oversee the operations of the three smaller firms.
“This will enhance the efficiency of investment and performance governance, as well as work to achieve unified economic and investment goals,” OIA said.
A priority project for the Fisheries Development Oman is fast-tracking the implementation of the Barr Al Hikman Shrimp Aquaculture Farm. Slated to consist of 40,000 hectares of land with an annual estimated production capacity of 200,000 tons of shrimp when complete, the project will be one of the largest aquaculture facilities in the Middle East and North Africa.
Oman’s seafood exports reached USD 114.5 million (EUR 102 million) in 2017, while the country’s seafood imports totaled USD 63 (EUR 56 million).
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