Bank Muscat's Meethaq to finance poultry farm project

12/04/2017 07:36 AST

Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, signed an agreement to provide Islamic project finance for Dar Al Tomouh company to set up the Sultanate's first-of-its-kind commercial contract chicken farming project in the wilayat of Nizwa.

The project with an annual production capacity of 3.74 million kg live chicken will have a far reaching impact on improving the living standards and generating employment opportunities for farm entrepreneurs. Over a period of three years, Dar Al Tomouh will set up a commercial broiler chicken farm, poultry hatchery and processing plant and enter into contract farming with Omani farmers with buy-back arrangement. A poultry disease diagnostic lab and a broiler breeding farm will also be established with the total investment in the range of OMR8 to OMR10 million. Dar Al Tomouh will train local farmers on modern poultry management practices and monitor the farms.

Sulaiman Al Harthy, Deputy Chief Executive Officer of Meethaq Islamic Banking, and Naveen Pasuparthy, CEO of Dar Al Tomouh company, signed the agreement at the bank's head office in the presence of dignitaries and senior officials of the bank and Dar Al Tomouh company. "Meethaq is delighted to partner with Dar Al Tamouh project contributing to food security and economic diversification in the Sultanate. The support for the project comes in line with Meethaq vision to bring the benefits of Islamic banking to all strata of society. Meethaq has been closely involved with important projects contributing to economic diversification and development of the country. Since its inception four years ago, Meethaq has extended financial partnership to a number of projects in various fields, which reflect the Meethaq commitment to support the progress and development of Oman," Al Harthy said.

"Dar Al Tomouh is proud to join hands with Meethaq to establish the project aimed at making a significant contribution to Oman's food security. The project will lay a solid foundation for localised poultry production with the involvement of experienced players from India such as Srinavasa and Bal Krishna Group. The project will contribute to Oman's GDP by reducing imports and creating employment in the farm sector in Oman," Naveen Pasuparthy added.

According to government data, the consumption of chicken in Oman stood at 150,000 tonnes in 2016. Imports accounted for 60 per cent of this annual requirement at 90,000 tonnes while 40 per cent local production equated 60,000 tonnes.

In 2016, an estimated 29 million broiler fertilized eggs were imported in Oman. Dar Al Tomouh will establish a state-of-the-art broiler breeding farm to produce locally customised fertilised eggs.

Times of Oman