Oman's Khazaen Economic City inked its first GCC investment deal with Saudi Arabia's Watania Al Khalijyah for Paper Products, which is one of the business units of Al Watania for Industries.
The agreement was signed with an initial investment of $5m (OMR2m) to establish the first factory in the Sultanate for the production of carton plates, Khazaen Economic City stated in a tweet.
حققنا اليوم أحد أبرز الإنجازات لهذا العام باستقطابنا لأول الاستثمارات الخليجية في #مدينة_خزائن_الاقتصادية وذلك بالتوقيع مع الشركة الوطنية الخليجية للمنتجات الورقية التابعة للشركة الوطنية للصناعة على اتفاقية استثمار لإنشاء أول مصنع لإنتاج الأطباق الكرتونية في السلطنة pic.twitter.com/cnIuYLo5uA— Khazaen Economic City مدينة خزائن الاقتصادية (@KhazaenEC) February 25, 2020
The manufacturing facility will spread over an area of 10,000m2 in Khazaen's light and industrial zones. Work on the factory will be completed in eight months.
The agreement was signed in Muscat by chief executive officer of Khazaen, Khalid Awadh Al Balushi, and CEO of Al Watania, Eng Ibrahim bin Ibrahim Behairi.
Speaking about the deal, Al Balushi, said: “With the signing of the project with Al Watania for Industries, which is one of Saudi's leading companies, we aspire to attract more inwards investments from GCC countries in general, and from Saudi Arabia in particular, as this will not only bring more industrial knowhow to the Sultanate, but also will create promising job opportunities for the Omani youth."
“This is a testament to Oman's investor-friendly climate in general," he added.
Commenting on Al Watania's partnership with Khazaen, Eng. Ibrahim Behairi, said: “Oman is known to be an investment-friendly country. We are confident that our investment in establishing the first factory affiliated to Al Watania to produce carton plates in Khazaen will be a great added value for both parties. We plan to allocate 60% of the factory's production capacity to meet local demand, while exporting the rest to regional markets.”
“The options and advantages offered by Khazaen along with its strategic location have been important factors for us to choose the economic city. Through this project, we together can contribute to the growth of inter-GCC investments," he added.