Oman

The Competence Center for Food and Agriculture at AHK Oman, supported by the German Federal Ministry of Food and Agriculture (BMEL), serves as a central platform to strengthen cooperation between Germany and Oman in the food and agriculture sector. It provides German companies with market intelligence, networking opportunities, and advisory services to facilitate their entry into the growing Omani market.

Recent developments, such as the integration of solar energy into agriculture, the rise of the Najd region in Dhofar as an agricultural hub, and government initiatives like agricultural cities in southern Oman, highlight the potential for German-Omani partnerships.

Oman’s population grew at an average annual rate of 3.2% between 2014 and 2019, with a projected growth rate of 1.5% in 2025. The real GDP growth forecast for 2025 is 2.5%, which is expected to fuel food consumption.

From 2014 to 2019, the largely urban and youthful population grew by 3.0% annually, with millennials driving demand for organic food, leading to a 38.7% increase in consumption. As demand outpaced supply, food imports rose by 4.2%, reaching approximately 3.2 million tonnes in 2019 — with grains as the leading import category. At the same time, food exports grew by 8.1% per year, reinforcing Oman’s role in regional markets.

Under Oman Vision 2040, the government aims to attract 11.7 million tourists by 2040, supported by over USD 51 billion in investments. This will significantly increase demand for high-quality food products, offering a prime opportunity for German suppliers to cater to the needs of Oman’s expanding tourism sector.

Among GCC countries, Oman leads in food self-sufficiency. In 2019/2020, it covered over 50% of its demand for fruit and meat, and more than 80% for vegetables (excluding fisheries). Several initiatives aim to further strengthen food security:

• Oman Food Investment Holding Company (OFIC): Founded in 2012, OFIC leads the National Food Security Strategy through subsidiaries like Al Bashayer Meat Company and Mazoon Dairy. In 2024, it merged with Fisheries Development Oman (Times of Oman, 2024).
• Seedling Distribution: The Ministry distributes fruit seedlings and date palm offshoots to boost production (Times of Oman, 2024).
• Oman Food Security Lab: Launched 41 projects worth over USD 116 million (Zawya, 2024).
• Agricultural Cities: Plans for agricultural cities in Dhofar (Najd) and Al Wusta (each 50 sq km) began in 2024, expected to contribute 2% to GDP and create over 10,000 jobs (Muscat Daily, 2025).

Oman is modernizing its agriculture with solar-powered systems. The Al-Aflaj project is replacing traditional irrigation with drip and sprinkler systems, saving up to 70% of water (Oman Observer, 2025).
Solar-powered irrigation — including hybrid systems using the Falaj — is reducing costs and promoting sustainability (ScienceDirect, 2025). Inspired by initiatives like India’s MSKVY 2.0 (SolarQuarter, 2025), this trend opens strong collaboration opportunities for German solar technology providers.

• Najd Region (Dhofar): A key agricultural hub with OMR 66 million in revenue in 2023/2024, including OMR 40 million from livestock and OMR 4.1 million from wheat. Date production rose from 502 to 1,880 tonnes, and wheat production from 1,500 to 10,510 tonnes (2022–2024) (Muscat Daily, 2025).
• Al Wusta (Duqm): In 2024, 3.3 million square meters of farmland were auctioned, signaling significant potential for future development (Muscat Daily, 2024).

Key projects and initiatives are opening up a wide range of opportunities for German companies:

• Greenhouse vegetable farming in Al Zaroub (4.6 acres): Announced in March 2025, this project focuses on leafy greens using modern technology. Currently in the planning or early implementation phase. Applications via Tatweer.
• Five SME projects in Safwan (5 acres each): Announced in March 2025 for crops such as vegetables, ginger, onions, potatoes, and fodder. Planning or early implementation is underway; investor applications are ongoing.
• Food Security Lab 2024 Projects: Completed in October 2024, launching 41 projects worth over OMR 45 million, with a focus on strategic crops and aquaculture. Partial implementation likely by March 2025.
• OFIC’s USD 1.2 billion investment plans: Announced in 2021 for the 2021–2026 period, including a food fund, camel milk farms, and vertical farming. Projects are in planning or early execution stages as of 2025.

German companies can contribute their expertise in:

• Sustainable irrigation and greenhouse technology: Essential for water-efficient farming in Al Zaroub and Safwan.
• Agri-tech solutions: Precision agriculture can boost yields in Food Security Lab projects.
• Food processing and logistics: Supports OFIC initiatives such as vertical farming and expanded distribution networks.
• Solar technology: The integration of renewable energy aligns with Oman’s sustainability goals.

Specific Needs and Opportunities in Food Processing

The food processing sector offers strong potential for German technologies:

• Post-harvest processing: Technologies for onions, garlic, potatoes, and wheat are in demand, especially to support the Food Security Lab’s goals. German companies can provide machinery for cleaning, sorting, drying, and packaging.
• Aquaculture and fish processing: As the only net exporter of fish in the GCC (accounting for over 31% of regional production), Oman requires equipment for filleting, freezing, preservation, and value-added fish products.
• Dairy and poultry processing: With 92% self-sufficiency in dairy and major projects like Al Namaa Poultry underway, there is growing demand for processing equipment for milk, cheese, yogurt, and poultry products. German know-how in pasteurization and packaging is highly valued.
• Desert agriculture processing: Technologies for dates (97% self-sufficiency), tomatoes (83%), and heat-tolerant crops are essential. Solutions for dehydration and long-shelf-life products are especially important.
• Sustainable solutions: Energy-efficient and solar-powered processing facilities help reduce costs and support Oman’s green development goals.

Market Trends and Opportunities

• Organic foods: A growing niche market with increasing consumer demand.
• Production innovation: High demand for German-made technology and automation.
• Convenience products: Rising popularity of ready-to-eat and easy-to-prepare foods.
• Food safety: Strong interest in German quality and safety standards.