Oman's A’Saffa Foods inks $81m Islamic finance deal

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Oman's A’Saffa Foods inks $81m Islamic finance deal

Oct 2, 2017 10:46 AM

A Saffa Foods a fully integrated poultry and processed food producer based in Oman said it has secured a RO31.5 million ( 81.5 million) loan from Meethaq the Islamic banking unit of Bank Muscat to finance...

A’Saffa Foods, a fully integrated poultry and processed food producer based in Oman, said it has secured a RO31.5 million ($81.5 million) loan from Meethaq, the Islamic banking unit of Bank Muscat, to finance its robust expansion plans.

The expansion project will see the company double the production capacity of A’Saffa Foods from the current capacity of 20 million birds per annum production to 40 million birds per annum; and will comprise the addition of 10 farms with 90 poultry houses, in addition to a hatchery, feed mill, processing plant, and other utilities.

A’Saffa Foods CEO Dr Nasser Zahir Nasser Al Maawali and Sulaiman Al Harthy, the deputy chief executive at Meethaq Islamic Banking signed the agreement in the presence of company chairman Sheikh Rashid Saif Mohammed Al Saadi, chief financial officer Rafique Chaudhary and marketing and sales head Sidhartha Lenka.

Speaking on the sidelines of the signing ceremony, Al Saadi said: "In keeping with the government’s vision of enhancing food security and economic diversification - we are pleased to join hands with Meethaq for the long-term financing of the expansion project, which will make a significant contribution to Oman’s food sector."

"With an annual production capacity of 40,000 tonnes of chicken meat per annum, the project will have a far-reaching impact on meeting the growing demand of A’Saffa products in the sultanate and beyond; and will also help in the generation of employment opportunities," he added.

Dr Al Maawali said being market leaders in the sultanate, A’Saffa Foods has always been committed to proactively improving its performance year on year.

"Given our robust expansion plans, we will continue to focus on production and operational excellence, brand variation and overall growth and development; while creating long-term value for our stakeholders, and ensuring sustainability in all our operations," he stated.

Chaudhary said the expansion project’s key objectives include promoting food security, increasing Omanisation and export percentage besides boosting business environment, as well as stimulating the economy of the country by reducing dependence on the oil and gas sector.

Lenka said given the market environment, A’Saffa Foods was proud to be a leading domestic poultry producer with a market share that is steadily growing.

"Expansions like these, will position us to grow further, while supporting our customers in particular, and the community at large," he added.-TradeArabia News Service