Oman Investment Authority
 | This article relies largely or entirely on a single source. (March 2024) |
| جهاز الاستثمار العماني | |
| Agency overview | |
|---|---|
| Formed | 2020 |
| Jurisdiction | Government of Oman |
| Headquarters | Muscat |
| Agency executive |
|
| Parent agency | Government of Oman |
| Website | http://www.oia.gov.om/ |
Oman Investment Authority (OIA) is the investment arm of the Sultanate of Oman, established by Royal Decree No. 61/2020. It is a sovereign wealth fund operating as an autonomous legal entity with complete financial and administrative independence, reporting directly to the Council of Ministers. Its primary mandate encompasses the prudent management of the Sultanate of Oman's funds and assets, with a strategic focus on optimizing returns and contributing to implementing Oman Vision 2040.
OIA manages its assets through two distinct Funds. The first being the Future Generations Fund (FGF), which encompasses OIA’s international assets as well as investments in both public and private markets. Its overarching objective is to safeguard the nation's reserves and assets, ensuring the financial well-being of future generations.
The second is the National Development Fund (NFD), specifically designed to promote economic diversification and the growth of targeted sectors within Oman. It comprises a diverse range of assets, including more than 160 companies, which include holding companies, publicly listed companies, direct private investments, and various financial instruments such as bonds, securities, Sukuk (Islamic bonds), and deposits. This comprehensive approach underscores OIA’s commitment to fostering economic sustainability and development within the country.
Board of Directors
Chairman of the Board: His Excellency Sultan Al Habsi, the Minister of Finance.
- Deputy Chairman: His Excellency Abdullah Al Harthy, the Undersecretary of the Ministry of Finance.
- Member: His Excellency Dr. Nasser Al Maawali, the Undersecretary of the Ministry of Economy.
- Member: His Excellency Abdullah Al Salami, the Executive President of the Capital Market Authority.
- International Member: Mr. Gudmundur Árnason, Permanent Secretary of the Ministry of Finance and Economic Affairs, Iceland.
Future Generations Fund (FGF)
OIA is entrusted with the pivotal task of identifying and pursuing top-tier investment opportunities that align with Oman's national and global ambitions. Its overarching goal is to diversify its investment portfolio across various sectors worldwide, fostering sustainable economic growth. In its relentless pursuit of this objective, OIA has diligently embraced international best practices to shape its investment strategy. These practices encompass prudent asset allocation, avoiding over-concentration in any specific geographic location, and the astute selection of promising sectors following prevailing trends in the global economy.
FGF represents a significant 40% of OIA’s total assets. This 40% is strategically distributed across more than 50 countries worldwide. This portfolio is primarily divided into:
1. Public Market Assets:
- A broad spectrum, this category includes global equities, fixed-income bonds, short-term assets, local securities, and multi-assets.
2. Private Market Assets:
- Private equity and real estate portfolio, both realized through direct investments and private ownership funds.
National Development Fund (NDF)
NDF represents 60% of OIA’s total assets. Its primary responsibility lies in handling OIA’s national assets and investments, with the overarching aim of contributing significantly to the growth and advancement of Oman's economy. Furthermore, it plays a pivotal role in supporting the state's general budget dividends and divestment revenues.
The diversified investments within this portfolio are strategically distributed across more than 10 key sectors, with a vast portfolio of over 160 holding and subsidiary companies. Additionally, NDF comprises a diverse array of assets, including bonds, securities, Sukuk, and deposits.
NDF’s assets fall under the following key sectors:
1. Energy
2. Mining
3. Logistics
4. Food and Fisheries
5. Tourism
6. Finance
7. Information and Communication Technology (ICT)
8. Services
9. Industry
Future Fund Oman (FFO)
The Oman Investment Authority has recently introduced the Future Fund Oman with the aim of attracting foreign investment and enhancing investments in local small and medium-sized enterprises (SMEs). The fund, with a capital of 2 billion Omani Rials (OMR), will be utilized over a span of five years at an annual rate of OMR 400 million.
It is structured to allocate 90% of its capital towards either new or existing projects. The remaining 10% will be distributed, with 7% earmarked for SMEs and 3% designated for startups. Targeting specific sectors, the fund will focus on eight key areas: tourism; industry and production; green energy; information and communications technology; ports and logistics services; mining; fisheries; and agriculture.[1]
Oman Vision 2040
OIA plays a pivotal and strategic role in implementing the objectives outlined in Oman Vision 2040. It has diligently endeavored to align the plans and strategies of all its national assets and investments with the overarching aspirations of this visionary initiative. OIA prioritizes optimizing its revenue generation capabilities to attain financial stability and substantially contribute to Oman's Gross Domestic Product (GDP). In this pursuit, it capitalizes on its extensive international relationships to attract foreign investments, with the explicit goal of achieving economic diversification and empowering the private sector. Furthermore, given that Oman Vision 2040 positions humanity at its core, OIA has consistently devoted attention and resources to developing and training its human capital.
References
- ^ Nuaimi, Ali Rashid Al; Observer, Oman Daily. "Future Fund Oman to boost investment". www.zawya.com. Retrieved 2024-03-31.