BMI View: Lower-for-longer oil prices have resulted in a deterioration in the short-term economic outlookfor Oman, which will in turn impact consumers and the food and drink sector. In the longer term, weremain relatively optimistic. An increasing population will sustain growth in the long term, while a drivetowards formalisation and premium food and drink products will promote expansion in mass grocery andorganised retail. The industry will also be supported by sustained government investment in domesticproduction.
Latest Updates And Industry Developments
In June 2017, Al Namaa Poultry and Meethaq, the Islamic banking branch of Bank Muscat, finalised along-term financing deal worth OMR50mn to finance a 60,000 tonne poultry production plant in Ibri.Shari'a-compliant financing could prove to be a major source of investment for food production firms inOman over the coming years given the expected continued development of Islamic banking.