Oman sets up OMR2bn fund to oversee government investments

The Oman Investment Authority (OIA) has launched a new fund to invest in a wide range of industries to develop the national economy and attract foreign investments, according to the state-run Oman News Agency.

The Future Fund Oman, as the fund is known, has a capital of $5.2bn (OMR2bn) that will be invested over the next five years. The fund will allocate 90 per cent of its capital to directly invest in new or existing investment projects that prove to be commercially and economically viable.

OAI said the remaining 10 per cent is divided into 7 per cent allocated to SMEs and 3 per cent allocated to startups.

The newly established fund will invest in eight strategic sectors including tourism, manufacturing, green energy, information and communication technologies, ports and logistics, mining, fisheries, and agriculture.

It offers its funding and investment solutions to various investor categories including private sector organisations, business owners, SMEs, foreign investors, and startups.

Oman’s new fund will complement the existing government financing and investment ecosystem, which includes several institutions such as the Development Bank, SMEs Development Fund, Rakiza Fund and Oman Technology Fund.

Oman joins GCC strategic investments drive

Meanwhile, governments in the GCC region are launching new funds to drive economic diversification and attract co-investors in the hosting economy.

Dubai announced the formation of a new investment fund, Dubai Investment Fund, under the Department of Finance that could absorb DP World and reach $80-100bn. The fund will drive investments in strategically important projects on behalf of the government.

It will also hold stakes in entities including utility giant DEWA, toll operator Salik and Dubai Taxi Company – which were privatised over the past years.

“Governments in the GCC are increasingly concerned about their sustainability and resilience and are supplementing their sovereign wealth funds offering with inward-looking strategic vehicles,” the Global SWF said in a report in January.

Kuwait also launched a new fund with a strategic domestic economic development mandate.

The Ciyada Development Fund will be part of the government’s 2023/27 economic development program and seeks to “accelerate the growth of the Kuwaiti economy, improve the quality of life and bolster transformation and progress in the various fields of development, through strategic planning and effective implementation of major development projects.”

Read: Dubai sets up fund to oversee government investments