$20m Khasab Agricultural City to strengthen Oman’s food security

MUSCAT, NOV 14
Agreements paving the way for the establishment of a $20 million integrated agricultural city in Khasab, Musandam Governorate, were signed during the Food Security Lab 2026 held in Muscat earlier this week, marking a new investment in the Sultanate of Oman’s expanding network of modern agricultural and food production hubs.
Musandam Global Investment Company SAOC (MGIC), in partnership with Yulin Holding, announced the signing of a usufruct agreement last week for the development of Khasab Agricultural City on approximately 462,000 square metres of land at Sal Asfal in the Wilayat of Khasab.
Envisioned as an integrated agricultural production and logistics hub, the project will encompass greenhouse and open-field cultivation supported by efficient irrigation systems, a plant tissue culture laboratory, and a commercial nursery producing high-quality seedlings for farming and landscaping requirements, including the nearby Palm Hills development.
Other components include livestock fattening facilities, agricultural inspection and sorting centres, cooling and packaging infrastructure, warehousing and distribution services.
The development will also introduce contract farming arrangements, technical guidance and market access support for local farmers, enabling them to participate in organised agricultural supply chains.
According to MGIC, the project seeks to strengthen domestic food production, minimise post-harvest losses and develop competitive Omani agricultural products for export. Its logistics component is expected to stimulate demand for cold storage, transportation, warehousing and freight services.
In a statement accompanying the announcement, MGIC said: “Our goal is to connect investment, knowledge, production and markets—creating opportunities for farmers, Omani talent, suppliers and service providers, and supporting a more diversified and sustainable economy in Musandam.”
The initiative adds to Oman's growing portfolio of planned agricultural cities. Notable among them is Saham Agricultural City in North Al Batinah, envisioned as a major technology-driven farming and food-processing hub. Another is Najd Agricultural City in Dhofar, whose master plan envisages a 54-million-square-metre development costing approximately RO 903 million, with annual agricultural output projected at 105,000 tonnes and the creation of 6,500 jobs.
A further agricultural city has been proposed in Al Dhahirah Governorate, reflecting the government's wider strategy to integrate modern farming, processing, research and sustainable water management.
MGIC, an investment company focused on Musandam's economic diversification, is also partnering with Malaysia's WCT International on the RO 70 million-plus Palm Hills residential development in Khasab. Another investment involves a RO 4 million construction materials complex at Mahas Industrial City, covering approximately 106,827 square metres.
For its part, Yulin Holding is described by MGIC as bringing investment and project delivery expertise, supported by research partnerships specialising in agriculture under arid conditions. Further particulars of the company's ownership, home jurisdiction and previous projects have not been independently established.