Investment Opportunities In The Fisheries And Aquaculture Sector In Oman

Oman's "Tanfeedh" programme has been established to promote economic diversification in the Sultanate. Tanfeedh aims to reduce dependence on the oil and gas sector, focusing on five key business sectors - manufacturing, transportation and logistics, tourism, mining and fishing.

Relying on the fisheries sector may seem a bold decision; however, commercial fishing in Oman offers significant opportunity for both local and international investors. Most of Oman borders the Arabian Sea, giving the Sultanate a clear advantage over its neighbours for developing its fishing industry. Further, the prohibition of trawling in Oman's Exclusive Economic Zone and minimal pollution have helped the country's fish stocks to flourish. In 2016, fishing sector income rose by 12 per cent, contributing over OMR 200 million to Oman's GDP.

The Ministry of Agriculture and Fisheries is considering a range of aquaculture projects (commercial fish farming) worth in excess of US$2 billion. The implementation of these projects (and others focused on the fishing sector) is expected to double the Sultanate's fish catch over five years, to 500,000 tonnes per annum by 2020. Furthermore, the World Bank recently published a report which stated that Oman's second largest natural resource after hydrocarbons, its fisheries sector, is "just a few steps away from becoming a world class competitive industry".

Aquaculture projects are gaining popularity in Oman. Galfar Engineering and Contracting SAOG (Oman's largest construction company) was recently awarded a OMR 60.69 million (US$157 million) contract to construct a major fishing harbour at Duqm's Special Economic Zone. The fishing harbour is designed to accommodate more than 60 processing plants and related facilities. The government is now inviting investors to set up fish processing and related plants in the new development, which is due to be completed in 2020.

The more profitable aquaculture sector in Oman received a welcome boost in June 2016 when the state-owned Oman Aquaculture Development Company and the Ministry of Agriculture and Fisheries concluded a cooperation agreement to establish, operate and manage the Aquaculture Farming Centre in Al Bustan. The project aims to enable fish farms in the Sultanate to restock with locally grown fish, as opposed to incurring the expense of importing stocks from abroad. The government has awarded a further 19 licences for aquaculture projects, with total investment estimated at OMR...