Salalah
Free Zone Signs Agreement for Beverage Production Project

Muscat,
12 Oct 2026 (ONA) — Salalah Free Zone (SFZ) today signed a usufruct agreement
with Advanced Packaging Company, affiliated with Alesayi Holding Company of the Kingdom of
Saudi Arabia (KSA), to establish an industrial project specialising in the
production of carbonated beverages, juices and energy drinks, with an
investment volume of RO 3.85 million ($10 million).

The
agreement was signed on behalf of Salalah Free Zone by Dr. Ali bin Mohammed
Tabuk, Chief Executive Officer of the Zone, and on behalf of Advanced Packaging
Company by Mohammed Ali Alesayi, Chairman of the Board of Alesayi Holding
Company.

The
agreement was signed at the headquarters of the Public Authority for Special
Economic Zones and Free Zones in Airport Heights in Muscat Governorate, in the
presence of Qais bin Mohammed Al Yousef, Chairman of the Public Authority for
Special Economic Zones and Free Zones (OPAZ), and a number of officials and
representatives of Salalah Free Zone and the investing company.

The
project will be established in Salalah Free Zone on a total area of
approximately 25.5 thousand square metres, including the acquisition of an
existing facility built on land with an area of 15,505 square metres, alongside
the allocation of additional land with an area of 10 thousand square metres to
support the project’s operations and its future expansion plans.

The
project represents a new addition to the food and beverage industries sector in
Salalah Free Zone. The project reflects the interest of Saudi investors in the
industrial and logistical opportunities the Zone provides, contributing to
enhancing economic and investment cooperation between the Sultanate of Oman and
the Kingdom of Saudi Arabia.

Dr.
Ali bin Mohammed Tabuk, Chief Executive Officer of Salalah Free Zone, said that
the signing of the agreement comes within the continuous efforts exerted by the
Zone to attract quality industrial investments, diversify the base of economic
activities, and enhance the contribution of non-oil sectors to the national
economy, in line with the targets of the Oman Vision 2040.

He
explained that the project represents a qualitative addition to the industrial
base in Salalah Free Zone, and supports its orientations towards developing the
food and beverage industries sector, given the growth opportunities this sector
enjoys and its ability to meet the needs of local and regional markets,
alongside its potential in the field of export and access to new markets.

He
said that the project embodies the Zone’s approach to achieving optimal
utilisation of existing assets and facilities and re-employing them within new
productive projects, contributing to accelerating the commencement of
operational processes, raising the efficiency of using infrastructure and
industrial facilities, and reducing the time required to develop the project
and begin production.

He
noted that the allocation of additional land for the project provides the space
needed to support the company’s operations and future plans, and grants the
investor greater flexibility in developing production lines and gradual
expansion in accordance with demand growth and the requirements of target
markets.

Dr.
Ali Tabuk affirmed that Salalah Free Zone will continue to provide the
necessary facilities and services to support the implementation of the project,
and to work in an integrated manner with the relevant authorities to facilitate
procedures and enable the company to commence its operations in accordance with
the approved executive programme, and to benefit from the investment advantages
and incentives the Zone provides.

He
explained that the strategic location of Salalah Free Zone and its integration
with the Port of Salalah and transport and logistics networks provide the
project with a competitive platform for production, distribution and export,
and enhance its ability to efficiently reach local markets and the markets of
the GCC states, East Africa, Asia and other regional and global markets.

by Mohammed
Ali Alesayi, Chairman of the Board of Alesayi Holding Company explained that
Advanced Packaging Company, affiliated with the Group, targets from
establishing its factory in Salalah Free Zone the Omani market and export to
markets in Yemen and Africa. He noted that this factory is the company’s third
after the two existing factories in the Kingdom of Saudi Arabia.

He
said that the company is working swiftly towards production at the factory,
which is expected to begin six months from now, noting that there are direct
and indirect job opportunities the project will provide.

He
affirmed that the company is studying the establishment of another factory in
Muscat specialising in the manufacture of cardboard boxes, alongside
transferring a third production line in the beverages field to the Sultanate of
Oman.

The
project is expected to contribute to enhancing local added value by supporting
supply chains linked to the beverage industry, and benefiting from local
services in the fields of transport, storage, packaging, maintenance and
logistics, alongside creating direct and indirect job opportunities as the
project’s implementation and operation stages progress.

The
project also supports Salalah Free Zone’s efforts to build an integrated
industrial and logistical ecosystem, and to encourage the creation of linkages
between companies operating in the Zone and local service providers, thereby
enhancing the competitiveness of locally manufactured products and broadening
the scope of economic benefit from attracted investments.

The
signing of the agreement comes within Salalah Free Zone’s strategy to attract
investments of economic value, develop industrial sectors capable of growth and
export, and enhance its standing as a regional investment destination and a
centre for production and distribution, benefiting from investment incentives,
advanced infrastructure, one-stop-shop services and the diverse solutions it
offers to investors.

—
Ends/Khalid