Khazaen economic city inks US$20.8M deal with Sohar Food & Beverage for new drinks facility
The beverage plant will produce carbonated drinks and natural juices for Oman and regional markets, boosting local manufacturing.
OMAN – Khazaen Economic City has signed an investment agreement with Sohar Food & Beverage LLC to establish a beverage manufacturing facility within its Food City zone.
The project spans 15,000 square metres and carries a total investment value of RO 8 million (US$20.8M).
The facility will focus on producing carbonated beverages and natural juices for local and regional distribution. This initiative supports Oman’s Vision 2040 by promoting economic diversification, encouraging high-impact industrial investments, and reducing import dependency.
The agreement was made possible through the Invest in Oman Lounge, a government-supported platform designed to facilitate investment approvals and streamline access to national opportunities.
The partnership reflects enhanced collaboration among investment-related agencies and highlights Khazaen’s evolving role as a central hub for food and beverage manufacturing in Oman.
In addition to supporting food security and enhancing the fast-moving consumer goods (FMCG) sector, the facility is expected to create job opportunities and prioritize value-added production using local ingredients wherever feasible.
Commenting on the agreement, Khazaen CEO Eng. Kalat Ghulam said, “We are proud to welcome Sohar Food & Beverage LLC as a partner. This investment reinforces Khazaen’s position as a catalyst for industrial growth and reaffirms our commitment to enabling Oman’s manufacturing ecosystem.”
This project marks a significant milestone in Khazaen’s efforts to build a strong industrial base in the food and beverage sector. It aligns with broader goals to position Oman as a regional centre for production and distribution.
The development comes amid positive forecasts for the beverage industry in Oman. According to ReportLinker, total beverage sales are expected to reach US$846 million by 2026, growing 1.7% annually from US$765 million in 2021.
Alcoholic drink exports are projected to hit US$13.9 million by 2026, rising 0.4% annually from 2021’s US$13.6 million.
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