Oman: OIA injects $18bln into state budget
Details about OIA's major contributions to the national economy over the past five years have been highlighted in an interview by Sultan al Habsi, Chairman of OIA's Board, in the latest edition of Enjaz & Eejaz, OIA's quarterly bulletin. Al Habsi also discussed the dual financial and economic impact of the National Development Fund (NDF), which spent over RO 8.8 billion since its establishment. Its financial importance lies in enhancing financial stability, reducing the state's budgetary burden, and stimulating national economic activity.
Economically, it is strategically aligned with Oman Vision 2040 as these projects focus on high-impact sectors, helping diversify the productive base, generate local employment, and strengthen supply chains. In the same interview, Al Habsi clarified the Board's role in steering investment decisions and ensuring long-term financial sustainability.
The Board is tasked with approving OIA's vision and strategy, overseeing major investment decisions, asset allocation, policy approval, and its companies' governance, ensuring, as he described, that OIA remains 'a trusted custodian of Oman's wealth, investing for present and future generations in alignment with Oman's national interests.'
Recognising its national responsibility to contribute to development and achieve the goals of Oman Vision 2040, OIA highlighted its 'National Agenda', a set of development-oriented commitments including attracting foreign investment, reducing its companies' debt, developing human capital, maximising local content, and supporting the national digital transformation journey. OIA has made tangible progress toward these goals. In 2024 alone, the NDF and FFO attracted more than RO 3.3 billion in foreign investments, while the divestment programme drew over RO 1.5 billion.
OIA also cut debt by more than RO 2.5 billion by the end of 2024. It prioritised human capital development through initiatives like the 'Nomou' and 'Mu'tamad' programmes, positioning people as drivers of growth. It also focused on maximising local content, issuing policies and guiding its companies to adopt and enhance local content practices. Programmes like the 'Vendor Development Program' helped develop 58 small and medium enterprises (SMEs) between 2023 and 2024, in addition to initiatives such as the 'Mandatory list', 'Ring Fencing', and the 'Qimam' Hackathon. These efforts led to an increase in SME spending to RO 265.5 million in 2024.
On the digital transformation front, OIA aligned its internal digital strategy with the national plan under Oman Vision 2040.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Business
an hour ago
- Arabian Business
UAE tops 2025 global digital rankings with world's fastest mobile internet and AI leadership
The UAE has reinforced its position as a global leader in digital transformation, achieving top rankings in multiple international indices and setting new benchmarks for technology-driven growth. According to the United Nations E-Government Survey 2024, the UAE ranked first globally in the Telecommunications Infrastructure Index with a perfect score of 100 percent, reflecting the extensive reach and efficiency of its digital networks. In mobile internet performance, the UAE maintained its number one global ranking in the Speedtest Global Index from July 2024 to June 2025, with an average download speed of 546.14 Mbps in June — far ahead of its closest competitors. UAE digital services In 2024, UAE government entities completed 173.7m digital transactions, serving more than 57m beneficiaries across 1,419 digital services, achieving a 91 per cent satisfaction rate. The UAE's smart city credentials also climbed to global prominence in the IMD Smart City Index 2025, with Dubai ranked fourth worldwide and Abu Dhabi fifth, reflecting significant advances in infrastructure, digital services, and quality of life. The country topped the Middle East in the Government AI Readiness Index 2024, issued by Oxford Insights, measuring government efficiency, technology sector growth, and infrastructure readiness. According to the Interregional Centre for Strategic Analysis in Abu Dhabi, the UAE is on track to lead the region in AI adoption, powered by targeted investments in research, skills, and innovation. Industry experts say the UAE has moved beyond simply adopting technology to creating human-centred digital experiences. Rasha Abdo of Infobip praised the Dubai Government's 360 Services policy, which integrates proactive, people-first service delivery. Amjad Al Sabbagh of Sprinklr added that the United Arab Emirates' approach aligns with its goal to double the digital economy's GDP contribution by 2030, with AI projected to add 13.6 per cent to GDP (around $100bn) — a key driver of economic diversification and sustainable growth. With unmatched infrastructure, world-leading internet speeds, and a people-first innovation strategy, the United Arab Emirates is positioning itself not just as a regional technology hub, but as a global model for digital excellence and AI readiness.
The National
an hour ago
- The National
Acwa Power leads consortium to develop $4bn Kuwait power and water project
Saudi Arabia's utility developer Acwa Power and its partner Gulf Investment Corporation have signed an agreement with Kuwait to develop two phases of Az-Zour North water and power plant with total investment of $4 billion. The agreement, signed on Sunday with the Kuwait Authority for Partnership Projects (KAPP), is intended to help the country address severe electricity shortages. The phases two and three of the Az-Zour North project will have a net power generating capacity of at least 2.7 gigawatts and a desalination capacity of 120 million gallons of water daily, Acwa Power and GIC said in a statement on Sunday. Under a 25-year agreement, the Acwa Power-led consortium will design, finance, build, operate, maintain and transfer the plant and its associated facilities. 'This investment highlights our commitment to Kuwait's growth vision,' Raad Al-Saady, managing director and vice chairman of Acwa Power, said. Electricity shortages The deal is in line with Kuwait's push to boost its electricity generating capacity and further build its water infrastructure. Kuwait, in the recent past, had to implement temporary power cuts in select industrial and agricultural areas as demand surged beyond the available capacity. This is not the first time Kuwait has grappled with electricity supply issues. Last summer, it resorted to rare scheduled power cuts as temperatures soared. Experts have long warned of an impending electricity crisis in Kuwait, citing indecision over the construction of power stations to meet rising demand. Additionally, much of the country's power infrastructure is outdated and requires frequent maintenance. Another key challenge in addressing the crisis is Kuwait's subsidy-driven energy model. The government provides heavily subsidised electricity to residents, leading to high consumption as customers have little financial incentive to reduce their consumption. Kuwait has set a target of generating 15 per cent of its electricity from renewable sources by 2030. Capital structure The Acwa Power-led consortium and KAPP will establish a project company, where the consortium will hold 40 per cent and KAPP will retain 60 per cent of the company's share capital, according to the statement. KAPP will then allocate 50 per cent of the company's capital for public subscription by Kuwaiti citizens after the project becomes fully operational by 2029 and is listed on the Kuwait Stock Exchange, the statement said. Kuwait-based GIC is equally owned by the six member states in the Gulf Co-operation Council. It has developed and owns 10 infrastructure projects in the region and has vast experience in the power and water and utilities sector in the Gulf. 'GIC is committed to ensuring the provision of sustainable electricity and water resources at competitive economic costs to support Kuwait's social and economic prosperity,' Ibrahim Al-Qadhi, chief executive of GIC, said. Acwa Power, backed by Saudi Arabia's sovereign wealth fund, the Public Investment Fund, is one of the largest renewable energy developers in the Middle East. It currently has operations in 15 countries across the Middle East, Africa, and Central and South-east Asia. It is an investor in and operator of 109 power generating and water desalination projects in operation, construction and advanced development with an overall portfolio size of about $117 billion.
Arabian Business
2 hours ago
- Arabian Business
Saudi Arabia's industrial production jumps 7.9 per cent in June 2025, driven by manufacturing and oil growth
Saudi Arabia's Industrial Production Index (IPI) rose 7.9 per cent in June 2025 compared to the same month last year, according to the latest bulletin from the General Authority for Statistics (GASTAT). The increase was driven by broad-based growth across key sectors: Mining and quarrying: +6 per cent year-on-year Manufacturing: +11.1 per cent Electricity, gas, steam, and air conditioning supply: +5.6 per cent Water supply, sewerage, waste management, and remediation: +6.9 per cent Based on main economic activities, oil activities rose by 7.7 per cent, while non-oil activities saw a stronger gain of 8.6 per cent — reflecting the Kingdom's continued progress in diversifying its industrial base while maintaining robust energy sector output. Saudi economic indicator The Industrial Production Index is released monthly and tracks relative changes in the volume of production across the Kingdom's key industrial activities. Data is collected through the Industrial Production Survey, which samples establishments involved in: Mining and quarrying Manufacturing Electricity, gas, steam, and air conditioning supply Water supply, sewerage, waste management, and remediation services The latest figures highlight Saudi Arabia's ongoing industrial expansion in line with its Vision 2030 strategy, which aims to boost manufacturing capacity, strengthen non-oil industries, and enhance overall economic resilience.
