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OIA played a key role in improving Oman's credit rating

OIA played a key role in improving Oman's credit rating

Observer4 days ago
In its quarterly bulletin 'Enjaz & Eejaz', marking OIA's fifth anniversary, the authority has highlighted its international investments and its pivotal roles in bolstering Oman`s economy amidst global challenges, which included boosting investor confidence and improving credit rating, bringing it back to an investment-grade rating after a seven-year decline
It reduced companies' debts by over RO2.5 billion and lowered government guarantees by 47%.
Since its inception, OIA has committed RO8.8 billion through the National Development Fund (NDF), creating dual-impact investments that serve as fiscal tools to enhance economic stability while alleviating budget pressures and stimulating growth.
Economically, targeted high-impact sectors, like tourism and real estate (9%), logistics (8%), and ICT (4%), diversify the base, generate employment, and strengthen local supply chains.
This redirection of oil & gas profits into Future Fund Oman (FFO) represents a leap in private sector empowerment and economic diversification sectors, excluding oil and gas. FFO, with its RO2 billion capital, is aligned with Oman Vision 2040 by investing in priority sectors, which are manufacturing, logistics, mining, tourism, clean energy, fisheries, and digital transformation.
FFO supports the Vision in empowering SMEs and supporting the national economy by allocating
90% to direct local projects and 10% to SME investments.
National Development Fund (NDF) The NDF manages Oman's domestic assets and companies, aiming to spur economic growth and support the state budget via dividends and
divestments. It also aims to enable sustainable economic development by investing in economic diversification sectors, which include tourism, real estate, mining, logistics, food security, and fisheries.
Future Fund Oman:
Launched in early 2024, this portfolio is OIA's newest and most ambitious investment arm. It focuses on supporting high-impact local projects and strategic investments to drive economic diversification and enhance Oman's investment appeal. With an RO2 billion commitment over five years, it also plays a key role in empowering the private sector by investing in major projects and SMEs, and start-up projects.
Most OIA's investments (61.3%) are concentrated in Oman, while foreign investments are distributed
across continents – led by North America (19.9%):
Nearly 68% percent of investments are in the energy sector, followed by 9 percent in the tourism and real estate sector.
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