Oman's Seafood Powerhouse: Merging Fisheries and Food Security

In a strategic move to bolster Oman's food security and position the country as a global seafood leader, the Oman Investment Authority (OIA) has announced the merger of Fisheries Development Oman (FDO) with the Oman Food Investment Holding Company (NITAJ). This consolidation aims to streamline operations, enhance efficiency, and drive the nation's ambitious vision for the future.

Unlocking Oman's Seafood Potential

Consolidating Fisheries and Food Security

The merger of FDO and NITAJ under the OIA's oversight marks a significant step in Oman's quest to become a seafood powerhouse. FDO, founded in 2019 as a joint venture between the Ministry of Agriculture and Fisheries and the OIA, has been at the forefront of the country's fisheries development. NITAJ, on the other hand, is the sultanate's food investment holding company, tasked with bolstering Oman's food security.By bringing these two entities together, the OIA aims to maximize operational efficiency, streamline expenditure, and leverage synergies to enhance the quality and cost-effectiveness of Oman's seafood products. This strategic move aligns with the country's Vision 2040, a national directive that seeks to transform Oman into a global seafood powerhouse.

Expanding Aquaculture and Fishing Operations

The merger comes at a time when both FDO and NITAJ have recently completed or are in the process of finalizing expansion projects. FDO's plans include a OMR 71 million (USD 184.5 million, EUR 165.7 million) land-based Atlantic salmon farm in Quriyat, with a capacity of 20,000 MT. The company has also launched the first Omani tuna fishing ship and completed a OMR 20 million (USD 52 million, EUR 47 million) shrimp-farming project that has commenced commercial production.Meanwhile, Simak, a subsidiary of NITAJ, has opened a new OMR 26 million (USD 67.5 million, EUR 62.8 million) sardine and tuna cannery in Dukm, further strengthening Oman's seafood processing capabilities. The OIA has also revealed an ongoing process to create additional investment opportunities in the country's shrimp-farming sector, with an international investor ready to enter a USD 1.6 billion (EUR 1.4 billion) partnership with the authority.

Streamlining Operations and Governance

The merger of FDO and NITAJ is expected to bring about significant operational and governance changes. The OIA has stated that the consolidation will involve an assessment of each company's obligations, existing contracts, and contractors to ensure a seamless transition and avoid any adverse effects on ongoing commitments.Furthermore, the authority has announced plans to reorganize the governance of all its subsidiaries, including the boards and executive management teams of the merged entities. This move is aimed at enhancing the overall efficiency and decision-making processes within the OIA's investment portfolio.

Prioritizing Employee Welfare

While the OIA has remained noncommittal on the future of employees at both FDO and NITAJ, the authority has emphasized its commitment to considering the impact of the merger on the workforce. The board of directors of the two companies will share relevant and appropriate information with employees, while also holding open discussions about the project and its implications.The OIA's focus on employee welfare underscores its recognition of the human capital that underpins the success of Oman's seafood industry. By ensuring a transparent and inclusive approach to the merger, the authority aims to maintain the expertise and dedication of the employees, who will be crucial in driving the country's seafood ambitions.

Strengthening Oman's Food Security

At the heart of the FDO-NITAJ merger lies Oman's unwavering commitment to enhancing its food security. The OIA has stated that the consolidation will contribute to the growth of revenues generated from the synergy of the two merged companies, ultimately strengthening the country's ability to meet its food needs.By leveraging the combined resources, expertise, and operational efficiencies of FDO and NITAJ, Oman can better position itself to address the challenges of food supply and distribution. This strategic move aligns with the nation's broader vision of becoming a global seafood leader, ensuring a sustainable and resilient food system for its people.