Oman's sovereign fund nets $4.1bn profit with disciplined, future-focused strategy: Report

Arab News

10 hours ago

RIYADH: Oman's sovereign wealth fund posted a record 2024 profit of 1.59 billion Omani rials ($4.1 billion) and grew assets above 20 billion rials, Global SWF reported.
The windfall enabled the Oman Investment Authority to transfer 800 million rials into the national budget, according to the report, providing a vital fiscal cushion and underscoring the fund's expanding dual role as both an economic engine and a diplomatic asset.
Beyond headline profits, OIA is executing a strategic shift, prioritizing domestic investments to generate local value while forming global partnerships to secure future-ready capabilities in areas such as artificial intelligence, clean energy, logistics, and manufacturing.
Ranked 35th globally by assets under management among sovereign wealth funds, the OIA is increasingly being viewed as a nimble but ambitious player.
According to Global SWF, its disciplined portfolio strategy, increased transparency, and joint fund architecture are transforming the fund into a networked sovereign investor with a growing international footprint.
At home, OIA's economic impact is significant. Around 61.3 percent of its portfolio is invested locally, mainly through its National Development Fund, which exceeded its 2024 target by deploying 2.1 billion riyals in strategic projects, according to Global SWF.
These include infrastructure ventures such as the Duqm Refinery, new mining operations in Lasil and Al Baydha, and solar energy plants in Manah.
Over the past year, the fund has inked a $300 million joint investment platform with Algeria and expanded its Vietnam-Oman Investment Fund.
These investments signal a shift in Gulf sovereign wealth funds— from passive holdings to active, technology-driven deal-making aligned with national objectives.
In parallel, OIA has launched the Future Fund Oman with an allocation of $5.2 billion, targeting large-scale domestic projects, small and medium-sized enterprises, and startups, according to a separate May report by Global SWF.
In its first year, the fund approved over $2 billion in deals, with 75 percent of capital coming from foreign investors, underlining investor confidence in Oman's diversification agenda.
Investing for Vision 2040
OIA's 2024 performance also reflected its focus on human capital and job creation, with nearly 1,400 new roles generated and the Omanization rate across OIA-linked entities reaching 77.7 percent.
Through programs like Jadarah, Nomou, and Eidaad, the fund is aligning education, training, and employment with Vision 2040's long-term growth objectives.
Meanwhile, the fund is moving from asset accumulation toward strategic exits. Since 2022, it has divested 19 assets, including three major IPOs: Abraj Energy Services, OQ Gas Networks, and Pearl REIF— raising over $2.5 billion, according to the release.
The October listing of 25 percent of OQ Exploration & Production marked Oman's largest-ever IPO, signaling deepening liquidity in Muscat's capital markets, according to the Global SWF May report.
OIA's roadmap includes 30 more divestments through 2029 across sectors, including logistics, utilities, and aquaculture, aiming to crowd in private capital and raise governance standards. These IPOs are structural tools to deepen Oman's market while supporting the transition to a knowledge-based economy.
Global investment, local value
Even as it expands abroad, OIA insists every foreign investment must deliver back home— whether in skills, supply chain resilience, or technology transfer. Recent deals illustrate this ethos.
In the US, OIA invested in Tidal Vision, a company developing climate-smart biopolymers. In Singapore, it joined a $100 million venture capital fund with Golden Gate Ventures and helped establish a Muscat-based venture office to incubate deep-tech startups.
In one of its most high-profile moves, OIA took a stake in Elon Musk's xAI, joining fellow Gulf players like Saudi's Kingdom Holding and Qatar Investment Authority.
The move links Omani capital to frontier technology while reinforcing the fund's mandate to back high-potential sectors shaping the global economy.
The OIA's operational discipline has not gone unnoticed. It reduced its subsidiary debt by nearly $5.6 billion since 2021 and refused to issue any new government guarantees in 2024, according to Global SWF, boosting investor confidence. Ratings agency S&P cited OIA's reforms and transparency in reaffirming Oman's BBB- rating with a positive outlook.