Feasibility Study for a Fish Processing Facility in North Al Batinah, Oman

Project Background & Objectives

The client aimed to establish a state-of-the-art fish processing facility near Saham Port, Oman, capitalizing on the region’s abundant marine resources and the rapidly expanding seafood industry. Given its strategic coastal location and access to a variety of fish species, the facility was designed to enhance the value chain by processing fresh catch into high-quality seafood products for both local and international markets. The project required an estimated investment of OMR 1.3 million and was structured to include three specialized processing plants, each serving a distinct function in the production cycle. Plant A, spanning 600 square meters, was dedicated to primary processing, focusing on tasks such as cleaning, gutting, and filleting the fish to prepare them for further processing or direct sale. Plant B, covering 800 square meters, was designed for value-added processing, incorporating advanced techniques such as marination, packaging, and freezing to enhance product appeal and shelf life. Meanwhile, Plant C, with an area of 400 square meters, was allocated for by-product utilization, ensuring minimal waste by converting fish remnants into fish meal, fish oil, and other commercially viable secondary products.

  • Plant A (600 sqm) – Primary processing
  • Plant B (800 sqm) – Value-added processing
  • Plant C (400 sqm) – By-product utilization

Key Objectives:

The project’s key objectives were multi-faceted, beginning with a thorough assessment of market demand, competition, and potential market share to position the facility effectively within the industry. A comprehensive evaluation of the technical feasibility was necessary to determine the appropriate equipment, infrastructure, and operational workflows for optimizing productivity and maintaining high-quality output. Ensuring regulatory compliance was another critical aspect, requiring adherence to both local Omani food safety regulations and international standards such as HACCP (Hazard Analysis and Critical Control Points) to facilitate global market entry. Financial feasibility analysis played a crucial role in shaping the project's viability, encompassing investment costs, revenue forecasts, break-even analysis, and risk mitigation strategies to ensure long-term profitability. Furthermore, operational efficiencies in procurement, production, and distribution were identified as essential components of success, requiring strategic sourcing of raw materials, streamlined processing techniques, and an efficient logistics network to deliver products to various markets with minimal delays. By addressing these critical areas, the project aimed to establish a highly efficient and competitive fish processing facility that could meet both local demand and international export requirements.

  • Assess market demand, competition, and potential market share
  • Evaluate the technical feasibility of processing plants, including equipment and infrastructure
  • Ensure regulatory compliance with local and international standards (HACCP, food safety)
  • Analyze financial feasibility, including investment costs, revenue forecasts, and risk mitigation
  • Identify operational efficiencies in procurement, production, and distribution

Approach & Methodology

SSC Advisory adopted a comprehensive feasibility study framework covering five key domains:

1. Market Feasibility

  • Conducted primary research through stakeholder interviews (industry experts, government officials, local businesses)
  • Analyzed secondary data from industry reports, government publications, and market research
  • Identified demand trends for seafood products domestically and internationally

2. Technical Feasibility

  • Evaluated machinery and technology requirements
  • Assessed infrastructure availability and plant layout optimization
  • Ensured compliance with food safety and quality assurance standards

3. Operational Feasibility

  • Developed a supply chain model for sourcing, processing, and distribution
  • Optimized workflow efficiency to reduce waste and enhance production output
  • Assessed the skilled labor requirements and training needs

4. Financial Feasibility

  • Conducted investment and cost-benefit analysis
  • Created revenue projections, cash flow models, and ROI estimates
  • Identified funding opportunities and financial risk mitigation strategies

5. Environmental & Social Impact

  • Performed an Environmental Impact Assessment (EIA) focusing on waste management and energy efficiency
  • Assessed the Social Impact Assessment (SIA), including job creation and local economic benefits
  • Developed mitigation strategies to address environmental concerns

To ensure accuracy, SSC implemented data triangulation (cross-referencing multiple data sources) and peer reviews for validation. Continuous stakeholder engagement ensured that findings aligned with industry needs and regulatory expectations.

Key Findings & Recommendations

The project capitalized on strong local and international demand for processed seafood, ensuring technical viability with advanced machinery to enhance efficiency and reduce costs. Financial feasibility indicated early profitability and sustainable growth. Designed to meet HACCP and international food safety standards, the facility integrated streamlined procurement, logistics, energy-efficient systems, and waste management for optimal sustainability.

  • Market Opportunity: Strong demand for processed seafood, both locally and internationally
  • Technical Viability: Advanced machinery ensured efficiency, reducing operational costs
  • Financial Feasibility: Project expected to achieve early profitability with sustainable long-term growth
  • Regulatory Compliance: Facility designed to meet HACCP and international food safety standards
  • Operational Strategy: Recommended streamlined procurement and logistics to optimize supply chain efficiency
  • Sustainability: Implemented energy-efficient systems and waste management solutions

Outcome & Impact

The client successfully secured funding from Oman Development Bank after submitting a well-structured proposal that highlighted the project’s economic viability, technical feasibility, and commitment to sustainability. This funding provided the necessary capital to establish the fish processing facility, ensuring smooth execution from infrastructure development to operational launch.

The project is expected to have a significant economic impact, generating employment opportunities for local communities and fostering skill development in seafood processing and logistics. By strengthening Oman’s seafood industry, it contributes to economic diversification and long-term sectoral growth.

Environmental sustainability remains a key focus, with the facility implementing advanced waste management practices to minimize its ecological footprint. Efficient resource utilization, including fish by-product conversion and energy-efficient systems, ensures the facility operates in an environmentally responsible manner while maintaining high production standards.

  • Client submitted the proposal and successfully secured funding from Oman Development Bank
  • Projected economic impact: Job creation, local skill development, and industry growth
  • Environmental impact: Sustainable waste management practices implemented
  • Conclusion

    SSC’s feasibility study provided a strategic roadmap for project execution, ensuring that the fish processing facility was market-ready, financially viable, and operationally efficient. With SSC’s expertise, the client secured funding and gained confidence in launching a sustainable and profitable business.

    Industry

    Aquaculture & Seafood Processing

    Project duration

    60 Days

    SSC division involved

    SSC Advisory