MUSCAT: Salalah Mills CoA SAOG, a leading Omani food manufacturer, has announced that it will establish a limited liability company named ‘Yemeni Omani Food Company LLC’ in the Republic of Yemen. The joint venture company will be headquartered in Yemen and will import and distribute grains.
The announcement was made in a board of directors’ resolution disclosure on Thursday. The board also approved the un-audited financial statements of the nine months period ending on September 30, 2023, and the board of director's report for the same period.
Salalah Mills will own a 50% stake in the new company, while the remaining 50% will be owned by a Yemeni partner. The authorized capital of the company will be $25 million, with an initial paid-up capital of 50%. The partnership will be financed through commercial loans.
The establishment of the new company is part of Salalah Mills' expansion strategy in the region. The company is looking to capitalize on the growing demand for food in Yemen, which is a country of over 30 million people.
Yemen is a net importer of food, and the country has been facing food insecurity challenges in recent years due to conflict and economic instability. The establishment of the new company will help to improve food security in Yemen and provide Yemeni consumers with access to high-quality food products from Oman.
The joint venture is also expected to boost trade between Oman and Yemen. The two countries have strong economic ties, and the new company is expected to further strengthen these ties.
The establishment of the new company is a positive development for both Oman and Yemen. It is a sign of the growing economic cooperation between the two countries and the commitment of Salalah Mills to expanding its business in the region.
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