Oman's Sovereign Fund Nets Record $4.1bn Profit, Shifts Strategy for Future Growth
The Oman Investment Authority sees domestic investments generating local value while forming global partnerships.
Riyadh - Oman’s sovereign wealth fund, the Oman Investment Authority (OIA), reported a record profit of 1.59 billion Omani rials ($4.1 billion) in 2024, surpassing previous years and growing its assets beyond 20 billion rials, according to Global SWF.The significant profit allowed the OIA to transfer 800 million rials into the national budget, providing a crucial fiscal cushion for Oman and highlighting the fund’s dual role as an economic driver and diplomatic asset.
This financial boost underscores the importance of sovereign wealth funds in supporting national budgets and stabilizing economies, especially in times of global economic uncertainty.Beyond just profit figures, the OIA is executing a strategic shift that prioritizes domestic investments aimed at generating local value while establishing partnerships globally to secure future-ready capabilities.
The fund's focus on sectors such as artificial intelligence, clean energy, logistics, and manufacturing reflects its commitment to investing in technologies that will shape the future economy.Ranked 35th globally by assets under management among sovereign wealth funds, the OIA is increasingly recognized as a nimble yet ambitious player with a growing international presence.
Its disciplined portfolio strategy, increased transparency, and joint fund architecture are transforming it into a networked sovereign investor with expanding global reach.Locally, the OIA’s investments have a substantial economic impact.
Approximately 61.3 percent of its portfolio is invested domestically, primarily through the National Development Fund.
This domestic investment approach has been successful, exceeding targets by deploying 2.1 billion rials in strategic projects, including infrastructure ventures such as the Duqm Refinery and solar energy plants.In addition to domestic investments, the fund has actively expanded its global footprint through joint investment platforms and funds.
It has partnered with countries like Algeria and Vietnam, demonstrating a shift among Gulf sovereign wealth funds from passive holdings to active deal-making driven by technology and national objectives.The OIA also launched the Future Fund Oman with an allocation of $5.2 billion aimed at domestic projects, small and medium-sized enterprises, and startups.
In its first year, the fund approved over $2 billion in deals, attracting 75 percent of capital from foreign investors, which indicates investor confidence in Oman’s diversification agenda.The OIA's focus on human capital development and job creation is evident in the generation of nearly 1,400 new roles and an Omanization rate of 77.7 percent across OIA-linked entities.
Through programs like Jadarah, Nomou, and Eidaad, the fund aligns education, training, and employment with Vision 2040’s long-term growth objectives.The OIA is also transitioning from asset accumulation to strategic exits, having divested 19 assets since 2022, including three major IPOs: Abraj Energy Services, OQ Gas Networks, and Pearl REIF.
The fund aims to raise over $30 billion through divestments by 2030, targeting sectors such as logistics, utilities, and aquaculture.
These divestments are intended to deepen Oman’s capital markets while supporting the transition to a knowledge-based economy.The OIA's global investment strategy emphasizes that every foreign investment must deliver value back home, whether in terms of skills development, supply chain resilience, or technology transfer.
Recent investments in companies such as Tidal Vision and participation in Elon Musk’s xAI demonstrate this commitment to investing in high-potential sectors shaping the global economy.OIA's operational discipline has led to a reduction in subsidiary debt by nearly $5.6 billion since 2021, standing at $23.92 billion at the end of the third quarter of 2024.
Additionally, it avoided issuing any new government guarantees last year, boosting investor confidence.
The OIA’s efforts and commitment to transparency have been recognized by ratings agency S&P, which reaffirmed Oman's BBB- rating with a positive outlook.
This financial boost underscores the importance of sovereign wealth funds in supporting national budgets and stabilizing economies, especially in times of global economic uncertainty.Beyond just profit figures, the OIA is executing a strategic shift that prioritizes domestic investments aimed at generating local value while establishing partnerships globally to secure future-ready capabilities.
The fund's focus on sectors such as artificial intelligence, clean energy, logistics, and manufacturing reflects its commitment to investing in technologies that will shape the future economy.Ranked 35th globally by assets under management among sovereign wealth funds, the OIA is increasingly recognized as a nimble yet ambitious player with a growing international presence.
Its disciplined portfolio strategy, increased transparency, and joint fund architecture are transforming it into a networked sovereign investor with expanding global reach.Locally, the OIA’s investments have a substantial economic impact.
Approximately 61.3 percent of its portfolio is invested domestically, primarily through the National Development Fund.
This domestic investment approach has been successful, exceeding targets by deploying 2.1 billion rials in strategic projects, including infrastructure ventures such as the Duqm Refinery and solar energy plants.In addition to domestic investments, the fund has actively expanded its global footprint through joint investment platforms and funds.
It has partnered with countries like Algeria and Vietnam, demonstrating a shift among Gulf sovereign wealth funds from passive holdings to active deal-making driven by technology and national objectives.The OIA also launched the Future Fund Oman with an allocation of $5.2 billion aimed at domestic projects, small and medium-sized enterprises, and startups.
In its first year, the fund approved over $2 billion in deals, attracting 75 percent of capital from foreign investors, which indicates investor confidence in Oman’s diversification agenda.The OIA's focus on human capital development and job creation is evident in the generation of nearly 1,400 new roles and an Omanization rate of 77.7 percent across OIA-linked entities.
Through programs like Jadarah, Nomou, and Eidaad, the fund aligns education, training, and employment with Vision 2040’s long-term growth objectives.The OIA is also transitioning from asset accumulation to strategic exits, having divested 19 assets since 2022, including three major IPOs: Abraj Energy Services, OQ Gas Networks, and Pearl REIF.
The fund aims to raise over $30 billion through divestments by 2030, targeting sectors such as logistics, utilities, and aquaculture.
These divestments are intended to deepen Oman’s capital markets while supporting the transition to a knowledge-based economy.The OIA's global investment strategy emphasizes that every foreign investment must deliver value back home, whether in terms of skills development, supply chain resilience, or technology transfer.
Recent investments in companies such as Tidal Vision and participation in Elon Musk’s xAI demonstrate this commitment to investing in high-potential sectors shaping the global economy.OIA's operational discipline has led to a reduction in subsidiary debt by nearly $5.6 billion since 2021, standing at $23.92 billion at the end of the third quarter of 2024.
Additionally, it avoided issuing any new government guarantees last year, boosting investor confidence.
The OIA’s efforts and commitment to transparency have been recognized by ratings agency S&P, which reaffirmed Oman's BBB- rating with a positive outlook.
