Oman-based Raysut Cement Co has renewed its cement distribution agreement with Somalia-based Barwaaqo Cement Co LLC for a further year, with an estimated contract value of US$49m.

The agreement, signed on 6 October 2026, covers the period from 15 September 2026 to 14 September 2027. The renewed contract represents an 8.9 per cent increase in value compared with the previous US$45m agreement signed in November 2025.

In a disclosure to the Muscat Stock Exchange, Raysut Cement said the agreement was expected to support production levels, improve capacity utilisation and contribute positively to the company's financial performance. The renewal also forms part of its strategy to strengthen cement exports to east African markets.

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Raysut Cement and Barwaaqo Cement have maintained a commercial relationship for more than a decade. In 2014 the companies announced plans to develop a US$7.5m cement packing and distribution terminal at Berbera port, with a proposed storage capacity of 12,000t.