Oman: The Oman Investment Authority (OIA) achieved a significant milestone with the official launch of the Oman Future Fund. This marks a strategic move aimed at driving economic development and attracting foreign investments.
President of OIA, Abdulsalam al Murshidi, highlighted the fund’s role as a crucial enabler of economic diversification. He stated, “It comes as a key enabler of economic diversification and a credible partner to local and international investors who are considering investing and expanding their businesses into Oman and becoming part of the Omani business community.”
The fund’s distinctive feature lies in its capital allocation strategy. With a substantial capital of OMR 2 billion, the Oman Future Fund plans to make a considerable impact over a five-year period, allocating OMR 400 million annually. 90% of the fund’s capital will be directed towards direct investments in economically viable projects. Moreover, these projects span essential sectors such as tourism, manufacturing, green energy, information and communication technologies, ports and logistics, mining, fisheries, and agriculture. The remaining 10% is earmarked for SMEs and startups, with 7% dedicated to the former and 3% to the latter.
Deputy President for Investment at OIA, Mulham al Jarf, provided insights into the governance framework. “The fund will complement the existing government financing and investment ecosystem that currently involves a number of institutions,” Jarf explained. The Ministry of Finance will serve as a strategic partner for managing direct local projects, and the Authority for Small and Medium Enterprises Development will provide valuable insights through its role in the Advisory Committee.
Furthermore, Jarf emphasized the Oman Future Fund’s role in complementing the existing government financing and investment ecosystem. He stated, “Oman Future Fund offers flexibility in choosing the type of investment participation, whether through direct financing at market rates or equity investments with the private sector in a balanced manner not limited to one sector alone.”
The Oman Future Fund’s launch signals Oman’s commitment to economic development and diversification. With strategic partnerships and a focused investment approach, the fund emerges as a dynamic force shaping Oman’s economic future.