6 days ago
Future Fund of Oman spurs RO1.2bn in investments across sectors
Muscat – Future Fund of Oman (FFO) approved 44 projects with combined investment value of approximately RO1.2bn in its first year of operations, attracting RO885mn in foreign capital reflecting growing international confidence in Oman's investment climate. The fund itself contributed RO333mn.
A report by Oxford Business Group highlighted FFO's role in supporting economic diversification and expanding Oman's investment base, in line with the goals of Oman Vision 2040.
Launched in January 2024 with an allocation of RO2bn (US$5.2bn), the fund is among the sultanate's most ambitious investment efforts to date. It aims to inject RO400mn annually over the 2024–2028 period from public resources, with additional capital drawn from private investors.
In the first three quarters of 2024, FFO secured RO832mn (US$2.2bn) in total financing. Of this, RO609mn (US$1.6bn) came from foreign sources. The projects announced in November span ten priority sectors including tourism, manufacturing, green energy, technology and electric vehicles. These are expected to directly create around 1,600 jobs, with broader indirect economic benefits.
'FFO is a critical project in Oman's drive to encourage more targeted, sustainable foreign direct investment. It also dovetails with the sultanate's long-term development plan, Oman Vision 2040 and its 11th Five-Year Plan covering 2026–30,' the report noted. These frameworks prioritise private sector-led growth while attracting international capital.
Established in collaboration with Ministry of Finance, FFO is managed by Oman Investment Authority, the country's sovereign wealth fund. Around 90% of FFO's capital is allocated to major projects – defined as those with a value between RO5mn and RO100mn – where the fund may hold up to a 40% stake.
The remaining capital is set aside for SMEs and start-ups. SME investments range from RO250,000 to RO5mn, with RO80mn – or 4% of FFO's total value – earmarked for this segment. Another 3% is dedicated to start-ups, with investments from RO4,000 to RO250,000. A further 3% is reserved for ventures that qualify as both SMEs and start-ups.
