Oman: OIA reinvents sovereign investing with home-grown impact and global reach
MUSCAT: The Oman Investment Authority (OIA) is emerging as one of the most strategically repositioned sovereign wealth funds in the Gulf, as it shifts from traditional asset accumulation toward a new mandate—creating tangible, long-term value both at home and abroad.
While 2024 marked a record year in financial terms, OIA's most notable transformation lies not in profits, but in purpose. Global SWF analysis shows that Oman's sovereign wealth fund is now prioritising economic diversification, innovation, and private sector development over purely financial metrics.
More than 61 per cent of OIA's assets are now invested inside the Sultanate of Oman—a rare statistic among global sovereign investors. This local-first strategy has turned OIA into a central engine of Oman's Vision 2040, a blueprint that aims to transition the economy away from hydrocarbons toward a more knowledge-based and inclusive model.
NATIONAL DEVELOPMENT THROUGH INVESTMENT
The National Development Fund (NDF), OIA's domestic investment arm, deployed RO 2.1 billion ($5.5 billion) in 2024, exceeding its target. These funds are being channeled into infrastructure, industrial diversification, and energy transition—key priorities under Vision 2040.
Among the most visible projects are the Duqm Refinery, which anchors the fast-growing SEZAD zone; solar energy plants in Manah, supporting renewable capacity; and new mining ventures in Lasil and Al Baydha, expected to tap into Oman's underdeveloped mineral wealth.
OIA's domestic deployment strategy is not merely about state-building—it is also about crowding in private capital and raising governance standards. The authority has already divested from 19 assets since 2022, with three IPOs—Abraj Energy Services, OQ Gas Networks, and Pearl REIF—raising over $2.5 billion. A further 30 divestments are planned by 2029, in sectors such as logistics, aquaculture, and utilities.
The October 2024 listing of 25 per cent of OQ Exploration & Production—Oman's largest IPO to date—signaled growing liquidity and maturity in the Muscat Stock Exchange. For OIA, this marked a turning point: moving from direct ownership toward enabling private sector participation and competition.
FUTURE FUND OMAN: A DOMESTIC CATALYST
Perhaps the most transformative initiative launched by OIA is Future Fund Oman, a RO 2 billion ($5.2 billion) platform launched in late 2023 to finance domestic transformation. The fund is focused on large-scale projects, SMEs, and startups—especially those with innovative or tech-forward business models.
In its first year alone, the Future Fund approved over $2 billion in investments. Strikingly, around 75 per cent of the capital came from international partners, highlighting growing global interest in Oman's evolving economic model.
The fund is expected to play a pivotal role in bridging the financing gap for non-oil sectors and accelerating the growth of locally embedded supply chains, industrial zones, and export-ready enterprises.
GLOBAL ENGAGEMENT WITH LOCAL RETURNS
While the fund's domestic focus is clear, its global engagements are increasingly shaped by the principle of strategic reciprocity. Every international deal must return value to Oman—whether through knowledge transfer, supply chain access, or sectoral expertise.
Recent global ventures illustrate this approach. In the US, OIA took a stake in Tidal Vision, a startup developing biodegradable materials from seafood waste. In Singapore, it joined Golden Gate Ventures in a $100 million venture capital initiative, establishing a presence in Muscat to support deep-tech incubation.
A high-profile move was OIA's participation in Elon Musk's xAI—alongside sovereign peers from Saudi Arabia and Qatar—connecting Oman's capital to frontier sectors such as generative AI and autonomous systems.
BUILDING TALENT FOR A DIVERSIFIED FUTURE
Human capital development is a cornerstone of OIA's updated strategy. The authority helped create nearly 1,400 new jobs in 2024, while Omanisation across its portfolio companies reached 77.7 per cent.
Through programmes such as Jadarah, Nomou, and Eidaad, OIA is also integrating training and professional development directly into its investment framework. These initiatives are structured to align educational pathways with labor market demands, especially in emerging sectors like clean energy, logistics, and digital infrastructure.
2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).
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