The OIA’s domestic impact is also unmissable, with approximately 61.3% of its portfolio invested in Oman, primarily through its National Development Fund.
A recent Global SWF revealed that Oman’s sovereign wealth fund, Oman Investment Authority (OIA), recorded a profit of 1.59 billion Omani rials ($4.1 billion) in 2024, with assets growing above 20 billion rials. The report also states that the OIA transferred 800 million rials into the national budget, supported by the additional revenue, thereby offering a much-needed financial cushion and highlighting the fund’s importance for economic and diplomatic reasons.
Along with incurring record profits, the OIA is also prioritising domestic investments to garner local value while continuing to nurture international partnerships. The wealth fund’s global approach will help secure future-ready capabilities in the fields of artificial intelligence (AI), clean energy, logistics, and manufacturing.
The Global SWF report suggests that the OIA has a disciplined portfolio strategy and is increasingly transparent. Along with these positives and its joint fund architecture, the OIA could soon become a networked sovereign investor with a rapidly expanding international presence.
The fund’s domestic impact is also unmissable, with approximately 61.3% of its portfolio invested in Oman, primarily through its National Development Fund. According to Global SWF, the National Development Fund exceeded its target last year by deploying 2.1 billion riyals in a number of strategic projects. Arab News reported that these projects include infrastructure ventures, new mining operations and solar energy plants across the country.
In the past year, OIA has also secured a $300 million joint investment program with Algeria and has broadened the scope of the Vietnam-Oman Investment Fund. OIA shifting its strategy is reflective of a larger trend among Gulf sovereign wealth funds, which are seeking more technology-oriented deals in tandem with national objectives.
Simultaneously, OIA has also launched the Future Fund Oman, with an investment of $5.2 billion, which focuses on large-scale domestic projects, small and medium-sized enterprises, and startups. In its very first year, the fund had approved $2 billion in deals, of which 75% of the capital was sourced from foreign investors. This also indicates investor confidence in Muscat’s economic diversification strategy.
Oman, like all Middle Eastern countries, is presently redirecting all its efforts to push economic diversification and expand its non-oil sector. While Saudi Arabia has its Vision 2030, Oman has its eyes set on Vision 2040. Therefore, the country wants to pump in investments in the technology, infrastructure, manufacturing and service sectors.
The OIA’s efforts have generated nearly 1,400 new roles, having focused on human capital and job creation. Education, training and employment are part of Muscat’s Vision 2040 strategy, and the sovereign wealth fund has supported these growth targets through programs like Jadarah, Nomou, etc.
The Global SWF’s May report confirms that the October 2024 listing of 25% of OQ Exploration & Production is Oman’s biggest IPO to date, underscoring the country’s deepening liquidity in its capital markets.
However, the fund is no longer interested in asset accumulation and has been on a divestment spree, having divested 19 assets, including major IPOs like Abraj Energy Services and OQ Gas Networks, and has raised more than $2.5 billion since 2022. OIA has already laid out the blueprint for over 30 divestments through 2029 across sectors like logistics, utilities, and aquaculture. The fund aims to gather private capital and improve governance standards.
Muscat’s priority has always been domestic improvement, and therefore, the OIA ensures that every foreign investment helps improve skills, supply chains, technology, etc within the country. The fund has made various international investments, namely, into US-based company Tidal Vision, Singaporean firm Golden Gate Ventures, and most significantly, bought a stake in Elon Musk’s xAI.
The Omani fund is committed to supporting the country’s Vision 2040 goals and is therefore backing high-potential sectors shaping the domestic and global economy alike.
