MUSCAT: Oman Flour Mills Company SAOG (OFM) has taken a significant step to strengthen its position in Oman’s food manufacturing sector after announcing the signing of a share purchase agreement that will substantially increase its ownership in Arabian Food Production Company SAOC.
In a disclosure on Sunday to the Muscat Stock Exchange and the Financial Services Authority, the company stated that its wholly-owned subsidiary, Atyab Investments LLC, on February 13, 2026 entered into an agreement to acquire the entire 33.34 per cent shareholding held by Gulf Japan Poultry Farm in Arabian Food Production Company.
Atyab Investments currently holds 33.33 per cent of the issued share capital of the food producer. Upon completion of the transaction and subject to the fulfilment of agreed conditions, its stake will rise to 66.67 per cent, giving the OFM group a controlling interest in the company. OFM noted that any material developments regarding completion of the transaction will be disclosed in accordance with regulatory requirements.
The acquisition marks another step in OFM’s broader strategy of strengthening vertical integration across the food value chain and enhancing domestic food production capabilities in support of Oman’s long-term food security objectives. OFM is among the largest integrated food groups in Oman and operates under the umbrella of the newly restructured and rebranded Oman Food Capital [formed by the merger of Oman Food Investment Holding Company (Nitaj) and Fisheries Development Oman], an affiliate of the Oman Investment Authority.
In recent years, OFM has expanded its investment portfolio both domestically and internationally to secure grain supplies, diversify sourcing channels and improve supply-chain resilience. Key initiatives include the establishment of Oman-Australia Limited, which works directly with farmers in Australia to secure wheat shipments and reinforce Oman’s strategic grain reserves. The company has also launched Atyab International Services in Uzbekistan, providing laboratory testing and quality assurance services to support import controls and regional food exports.
These investments are part of a long-term strategy aimed at strengthening food product quality, expanding global sourcing networks and supporting the national economy by ensuring reliable access to essential commodities. OFM has also invested in feed milling operations and frozen bakery production, while exploring opportunities for further regional expansion, including bakery operations in Saudi Arabia and potential agricultural collaboration projects overseas.
Industry observers note that the planned acquisition of additional shares in Arabian Food Production Company will allow OFM to deepen operational coordination within its food manufacturing ecosystem, potentially improving production efficiency and strengthening market competitiveness. Greater ownership control could also enable the company to accelerate new product development and expand capacity in high-demand segments of the domestic food market.
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