Oman's Salalah Free Zone has signed an agreement with Saudi company Advanced Packaging to establish a 25,500-sq-m factory that will produce carbonated drinks, juices and energy drinks, reported state news agency ONA.

The project, affiliated with Saudi Alesayi Holding Company, will involve an investment of RO3.85 million ($10 million), it stated.

The new factory complex will include an existing facility and additional land allocated for operations and future expansion.

Advanced Packaging Chairman Mohammed Ali Alesayi said the factory would serve the Omani market and export to Yemen and African markets. It is the company’s third factory, following two facilities in Saudi Arabia, he said.

Production is expected to begin in six months, Alesayi said, adding that the project would create direct and indirect employment opportunities.

Salalah Free Zone Chief Executive Ali bin Mohammed Tabuk said the signing of the agreement comes within the continuous efforts exerted by the Zone to attract quality industrial investments, diversify the base of economic activities, and enhance the contribution of non-oil sectors to the national economy, in line with the targets of the Oman Vision 2040.

"The project would also support the development of Oman’s food and beverage manufacturing sector and contribute to economic diversification," he noted.

The zone’s location and links to the Port of Salalah and regional transport networks would support distribution and exports to GCC, East Africa and Asian markets, added Tabuk.