Oman's Tanfeedh, a national programme for enhancing economic diversification, has projected that the sultanate’s largest integrated dairy farm project currently under development at Al Sunainah in Al Buraimi Governorate has the potential to contribute as much as RO800 million ($2.07 billion) to the local and national economy over the next 10 years, said a report.

Mazoon Dairy Company, a subsidiary of Oman Food Investment Holding Company (OFIHC), the government’s food investment arm, is overseeing the establishment of the landmark project with an investment of around RO100 million ($259.7 million), added the Oman Daily Observer report.

Construction work on the ambitious venture — part of a slew of investments backed by the Omani government to help advance the nation’s food security objectives — will officially kick off tomorrow (October 18), with a foundation-stone laying ceremony planned at the project site, it said.

In attendance will be a number of government dignitaries, including Dr Fuad Jaffar al Sajwani, Minister of Agriculture and Fisheries, as well as the Governor of Buraimi and local walis.

The event will pave the way for the formal commencement of the main construction package awarded to local contractor, Al Adrak Trading and Contracting LLC, at a cost of RO27.9 million ($72.4 million).

It includes the construction of the main dairy farm, feeding centre, milking parlours, staff accommodation, management office building, utilities and connecting road network, it said.

According to studies conducted by Tanfeedh, the Buraimi dairy project will not only help the sultanate dramatically reduce its dependency on dairy imports, but crucially, it will also have a positive impact on Oman’s Balance of Payments with regard to foodstuff imports, added the report.