5 days ago
OIA cuts debt, drives foreign investment through strategic overhaul
Muscat – Oman Investment Authority (OIA) is changing public perception and its performance through a wide-ranging programme of reforms and financial gains, according to a review published in a special edition of its quarterly bulletin Enjaz & Eejaz marking its fifth anniversary.
Since assuming ownership of state-owned companies, OIA acknowledged facing widespread societal perceptions that questioned governance, financial sustainability and the role of its companies in the broader economy. In response, the authority implemented targeted measures aimed at improving transparency, reducing costs and expanding private sector participation.
One of the key concerns was lack of clear governance structures. To address this, OIA introduced the Code of Governance for OIA Entities in 2021 and launched a digital platform to monitor compliance and institutional performance. These efforts helped OIA secure the third place globally in the Governance and Sustainability Performance Development Index.
Public concern over high salaries and unclear benefits was met with the Salaries and Incentives Rationalisation Programme. 'The reform reduced incentive categories from 80 to 12, unified benefits across companies and led to financial savings of more than RO250mn,' it stated.
To address doubts over profitability, OIA mandated annual disclosures using the XBRL platform and restructured company debts. By the end of 2024, overall debt levels had been cut by 47%. These improvements supported an upgrade in Oman's credit rating to the highest investment-grade level. 'Several affiliated firms have since returned to profitability.'
The authority also tackled concerns about competition with the private sector. Through its Divestment Programme and launch of Future Fund Oman (FFO), OIA divested from 18 assets via direct sales and listings on Muscat Stock Exchange. These moves brought in over RO1.5bn in private investment. OIA has also limited its ownership in new projects to a maximum of 40% to allow for greater private sector participation.
To streamline mandates and reduce duplication, OIA rolled out the Rawabet programme, aligning company policies with Oman Vision 2040. This led to 41 synergy projects and eight shared strategic priorities, along with restructuring in key sectors such as logistics, food and electricity.
In the bulletin's foreword, Abdulsalam al Murshidi, President of OIA, wrote, 'While we celebrate these milestones, we are acutely aware that the greatest opportunities lie ahead. Our focus will remain on private sector empowerment and foreign investment attraction through initiatives like the Divestment Programme and FFO. Concurrently, we will conduct comprehensive reviews of all policies and guidelines to ensure a robust governance framework, one that fosters collaboration across OIA and its companies, enabling even greater achievements for our nation.'
Looking forward, OIA plans to review performance evaluation frameworks, upgrade digital assessment tools and continue aligning its operations with global best practices, reinforcing its role in Oman's economic diversification and national development strategy.
