MUSCAT: Salalah Mills Company SAOG, a publicly traded company listed on the Muscat Stock Exchange (MSX) has signed an agreement to secure a 50% stake in Al-Rayyan Grain Mills and Silos Company of Yemen – a move that solidifies its commitment to regional expansion and addressing Yemen's pressing food challenges.
Building upon the momentum from their earlier disclosure in August 2023, Raysut-based Salalah Mills has made a strategic investment of approximately RO 2.5 million in acquiring the stake in Al-Rayyan Grain Mills, strategically located in the Hadhramaut Governorate's city of Mukalla, Republic of Yemen.
The agreement, signed on January 10, 2024, follows Salalah Mills' announcement in November 2023, wherein the company revealed plans to establish 'Yemeni Omani Food Company LLC,' a joint venture headquartered in Yemen. This new company, in which Salalah Mills will hold a 50% stake, is set to import and distribute grains, addressing the growing demand for food in Yemen, a country with a population exceeding 30 million.
The authorized capital for this joint venture stands at $25 million, with an initial paid-up capital of 50%, to be financed through commercial loans.
By entering into this partnership, Salalah Mills aims to contribute significantly to improving food accessibility in Yemen and providing the local population with high-quality food products sourced from Oman. Beyond the business aspect, the joint venture is expected to deepen economic ties between Oman and Yemen, fostering a positive trajectory for both nations.
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