Oman Investment Authority Unveils RO2bn Oman Future Fund

The Oman Investment Authority (OIA) has officially ushered in the era of the Oman Future Fund, a financial juggernaut with a whopping capital infusion of RO2bn set to revolutionize the investment landscape over the next five years. This colossal fund plans to disburse RO400mn annually, earmarking a substantial 90% for direct investments in economically and commercially viable projects, both existing and novel. As if this weren’t ambitious enough, the remaining 10% has been strategically divided, with 7% allocated to Small and Medium Enterprises (SMEs) and the remaining 3% reserved for nurturing startup ventures.

This financial behemoth is not just a run-of-the-mill investment fund; it’s a comprehensive solution, extending its financial benevolence to a diverse array of investor categories. Private sector organizations, business tycoons, SMEs, foreign investors, and startups alike will all have the opportunity to partake in the Oman Future Fund’s bounty. With its scope firmly set, the fund will abstain from direct local investments in oil and gas and real estate, opting instead to focus on eight key sectors: tourism, manufacturing, green energy, information and communication technologies, ports and logistics, mining, fisheries, and agriculture.

The Oman Future Fund’s grand debut aligns seamlessly with the directives of the OIA and its overarching commitment to fulfilling the nation’s economic aspirations. Abdulsalam al Murshidi, the President of OIA, passionately underscored the fund’s symbiotic relationship with government policies and strategies geared towards fortifying targeted economic sectors. “It comes as a key enabler of economic diversification and a credible partner to local and international investors who are considering investing and expanding their businesses into Oman and becoming part of the Omani business community,” emphasized Murshidi.

The fund’s strategic importance transcends mere financial dealings; it is envisioned as a catalyst for the empowerment and integration of the private sector, providing a robust support system for SMEs and amplifying venture capital initiatives throughout the sultanate. Al Jarf, the Deputy President for Investment at OIA, shed light on the fund’s meticulous governance, assuring that it will adhere to international best practices to optimize efficiency and flexibility. This financial juggernaut will not operate in isolation; it’s poised to complement existing government financing and investment ecosystems, collaborating seamlessly with institutions such as the Oman Development Bank, SMEs Development Fund, Rakiza Fund, and Oman Technology Fund.

In the intricate dance of collaborations, the Ministry of Finance assumes the role of a strategic partner to OIA in managing direct local projects, while the Authority for Small and Medium Enterprises Development offers invaluable insights as a member of the Advisory Committee. The Oman Future Fund, with the stalwart backing of entities like Oman National Investment Development Company (Tanmia), ITHCA Group, Omantel, and Cyfr Capital, stands as a testament to Oman’s unwavering commitment to economic transformation and a beacon of hope for investors navigating the ever-evolving financial landscape.