Page 38 - AA 2023 Year Book Website

Oman

OMAN AGRICULTURE MARKET ANALYSIS

The Omani agriculture market is projected to register a CAGR of 2.4% during the forecast period.

• The increase in the adoption of ad- tural self-sufficiency by encouraging Oman to increase the availability of ag-
vanced farming technologies and con- its farmers to use cutting-edge farming ricultural produce in the local markets.
ducive government policies support- methods in order to decrease import In 2021, The LuLu Hypermarket Oman
ing domestic crop production are some dependency. According to the Official opened a new store in Jalan Bani Bu Ali
factors driving the country’s market Oman eGovernment Services Portal, to in the South Sharqiya Governorate. This
growth. Through imports, Oman meets attract more agricultural investments, new store will further strengthen the
its domestic fruits, vegetables, and ce- concerned parties in the government group’s presence in the country. It will
reals demand. Therefore, to reduce im- provide many incentives. For instance, if offer customers a new level of standard
port dependency, the country aims for the agricultural project is located in the in price, convenience, comfort, quality
self-sufficiency in agricultural products governorate of Muscat (except Quriyat), in-store service levels, and a new shop-
by encouraging its farmers to adopt ad- Oman Development Bank will lend up ping experience.
vanced farming techniques. to 100% of the capital. Approximately
130% of the capital paid is supplied if Oman Investment Authority an-
• Agricultural production in Oman the project is constructed outside of the nounced a new project to market veg-
consists mainly of dates, vegetables, and Quriyat or Muscat governorates. etables and fruits in the country under
fruits, while other crops are cultivated the newly incorporated company Oman
at lesser volumes. According to world Furthermore, to install contemporary Food Investment Holding Company. Un-
bank statistics, the total amount of agri- irrigation systems in gardens, the coun- der this project, retail outlets are likely
cultural land in Oman was about 1.4 mil- try’s agricultural Ministry offers mon- to be established in densely populated
lion hectares in 2020, which accounted etary and synthetic loans, Exempting cities. In addition, SPAR opened a new
for 4.7% of the total land area. Fruits like businesses from paying income tax on store in the Ghala business district in
bananas and papaya are also grown in projects involving agricultural output. Muscat in 2020 as a part of its expansion
coastal regions, which accounted for The exemption is valid for five years fol- strategy. This SPAR Supermarket has a
18,447 ton and 5,840 ton of production, lowing the production date and may be total retail sales area of 710 sq. m. and
respectively, in 2020. Additionally, Oman extended for an additional five years. was designed in collaboration with SPAR
increased its barley, sorghum, and wheat The government offers loans to cus- International. The outlet is dedicated to
production in recent years. tomers willing to finance greenhouses, fresh agricultural products like fruits
modern irrigation systems, agricultural and vegetables, fish, and meat, among
• Moreover, the government launched
several initiatives to encourage pri- tractors, agricultural nurseries, date other categories.
factories, and any other project or ser-
vate sector production, such as updat- vice within the agricultural sector in the Thus, the increase in urbanization
ing regulations, providing low-interest country. These factors are increasing the rates and hypermarkets have also trig-
loans, aiding domestic production, and agricultural contribution to the GDP of gered the demand for high-value pro-
running campaigns to increase the vis- the country. For instance, according to cessed agricultural foods. Moreover,
ibility of locally made products, which is world bank statistics, the contribution of convenient logistics service provided
expected to boost the growth of agricul- agriculture to Oman’s GDP has increased by retail chains is changing the consum-
ture in Oman during the forecast period. from 1.98 in 2017 to 2.56 in 2020. There- er demand patterns in the market stud-
fore, the increase in government initia- ied in Oman. Hence, the changing retail
structure may influence consumer shop-
tives to support the agricultural sector ping behavior, likely boosting the agri-
in the country is expected to boost the culture market over the forecast period.
growth of the agriculture market.
Well established Retail networks are Oman Agriculture Market News
supporting growth of agriculture in the • July 2022: The Ministry of Agricul-
country ture, Fisheries, and Water Resources
(MAFWR) announced that it would dis-
The distribution network and retail tribute free seedlings to encourage
chains relating to agriculture are ex- Omani farmers to establish commercial
panding consistently in Oman. The model farms and grow various types of
Oman Agriculture Market Trends Omani retail industry is characterized fruits. It announced that farmers would
by strong consumer demand, robust be given seedlings of mango and Omani
Government policies of the country to economic growth, distinct demographic lemon for free, while seedlings of other
reduce import dependency factors, and a high-end technology sys- fruits would be given at a nominal price.
tem that ensures better customer ser-
Some of the reasons propelling the vice and efficient customer checks. • May 2022: Oman Investment Author-
market expansion in the nation include ity (OIA) and MycoTechnology, Inc. es-
the rise in the adoption of cutting-edge The increasing presence of major tablished a joint venture using locally
farming technologies and favorable retailers and supermarkets and their grown dates to produce high-quality
government policies promoting local aggressive import strategies result in mushroom-based protein. The two par-
crop production. The majority of Oman’s better access to many fruits and vege- ties will collaborate on building a state-
local need for fruits, vegetables, and ce- tables for the Omani population at com- of-the-art production facility in Oman to
reals is satisfied by imports. Therefore, paratively cheaper rates. For instance, In scale up and commercialize this novel
the nation is working toward agricul- 2017, Lulu Hypermarkets alone import- source of nutritious, sustainable protein.
ed 65 ton of vegetables and bananas to
36 Arab Agriculture 2023