Salalah Mills, Port of Salalah partner on strategic silos project in Oman
Salalah Mills described the agreement as a key step in its long-term growth and diversification strategy.
OMAN – Salalah Mills Company SAOG and the Port of Salalah has entered into a Memorandum of Understanding (MoU) that sets the foundation for the development of a strategic silos project at Oman’s southern maritime gateway.
The move aims at strengthening national food security while supporting the Sultanate’s ambitions to participate in global grain trading.
The project will be implemented by Raysut-based Salalah Mills and is designed around two core objectives: reinforcing Oman’s strategic grain reserves and creating the infrastructure base required for international grain trading activities.
In a filing to the Muscat Stock Exchange, Salalah Mills described the agreement as a key step in its long-term growth and diversification strategy.
“This MoU represents an important strategic step that will contribute to enhancing food security in the Sultanate of Oman and further strengthen the Group’s position and role in the regional and global grain trade”, the company said.
Specific project details, including total storage capacity, the number and configuration of silos, exact location within the Port of Salalah and implementation timelines, have not yet been disclosed.
However, the initiative is expected to enhance Salalah Mills’ position as a regional grain logistics and trading player by leveraging the port’s established maritime connectivity, cargo-handling infrastructure and access to major global shipping routes.
Salalah Mills is already a critical pillar of Oman’s grain supply chain. The company currently operates wheat silos with a capacity of around 120,000 tonnes and total grain storage capacity of approximately 161,500 tonnes, the largest in the Sultanate.
Its port-based assets include three grain unloading machines at the Port of Salalah with a combined discharge capacity of 1,200 tonnes per hour, allowing efficient handling of bulk grain imports.
The proposed Strategic Silos Project aligns with the company’s stated intention to move beyond domestic milling into international grain trading.
Two years ago, Salalah Mills announced plans to establish a dedicated trading subsidiary, Salalah Grains Trading International, at the Dubai Multi Commodities Centre (DMCC), a leading global hub for agricultural commodities, metals and energy trading.
Global grain trading represents a sizeable opportunity. According to Rabobank’s global grains and oilseeds data, international trade volumes reached about 880 million tonnes in the 2023–24 season, with an estimated trade value of roughly US$ 330 billion.
Wheat, corn, barley, oats and rice account for the bulk of these flows, underpinning global food and animal feed systems.
To strengthen its procurement and trading capabilities, Salalah Mills last year issued 12.5 million new shares through a private placement, raising OMR 12.5 million, equivalent to about US$ 32.5 million.
The shares were acquired by UAE-based ME (O) Solaris Investments Holding Limited, a grain supplier with sourcing strength in the Black Sea region. The company said the partnership would enhance supply chain stability, improve procurement efficiency and secure long-term sourcing advantages.
In parallel, Salalah Mills has expanded its regional footprint through the acquisition of a 50 per cent stake in Al Rayyan Salalah Co Ltd, a Yemen-based flour mill.
The investment supports the company’s broader strategy of expanding into high-growth markets, strengthening supply chains and increasing milling capacity to meet rising regional demand.
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