Oman Investment Authority’s assets exceed $49.3bln

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Muscat: Oman Investment Authority (OIA) assets reached OMR19.2 billion in 2023 compared to OMR17.9 billion at the end of 2022, according to the company’s latest annual report 2023.

The investment arm of Oman, which is mandated with managing, investing, and growing the Sultanate’s assets locally and internationally, has also reported profits of over OMR1.7 billion in 2023.

OIA has also contributed OMR800 million to the State’s General Budget, and with that OIA’s combined contributions to the Budget since 2016 exceed OMR6 billion, Abdulsalam Al Murshidi, President, OIA, has stated in the annual report.

This contribution was made from profits and returns only and there was no need to liquidate or sell any assets to generate liquidity, the OIA president further added.

“Continuing efforts to reduce the debt of OIA companies and to limit financial risks, approximately OMR300 million of OIA companies’ debt was prepaid in 2023. This helped improve Oman’s credit rating according to global credit rating agencies,” he pointed out.

OIA’s investment portfolio is geographically diverse, with investments on every continent, and cover a wide range of sectors, including food and fisheries, energy, logistics, Information and Communication Technology (ICT), public services, financial and investment services, tourism, mining, manufacturing, and aviation. It plays a key role in driving sustainable economic development and achieving Oman’s vision of becoming a more attractive investment destination.

The OIA President elaborated that in its quest to boost employment opportunities for citizens, 1,307 Omanis were hired by the OIA and its companies, exceeding the target number for 2023, which was 800 new positions.

“We also launched a number of new training and qualification programmes, most importantly the Oman Scholars programme for outstanding students, which received royal endorsement, and the OIA Academy for Training and Development,” Al Murshidi said.

In-Country Value

Efforts by OIA and its companies to enhance In-Country Value (ICV) and was also focused on small and medium enterprises (SMEs). The total spending on SMEs reached OMR202.6 million, including OMR106.7 million for Riyada Card holders. The share of SMEs in total expenditure on the supply chain was 16.8 percent.

The accomplishments of 2023 are due to the national talent, of which OIA is very proud, the OIA President said adding that, “The workforce’s experience, ambitions, and confidence harmonise perfectly with OIA’s style of work as the sovereign wealth fund of the Sultanate of Oman. They met expectations by achieving OIA’s goals and its national objectives.”

OIA focused on geographic and sector-based diversification of its new international and local investments to maximise returns and decrease risks. It tied some external investments to local target sectors by transferring state-of-the-art technology to the local market. The Private Markets’ arm of OIA’s Future Generation Fund (FGF) invested in 13 international funds in various sectors. It also entered various direct investments, while the Public Markets’ arm of FGF continued to invest in markets in several countries around the world.

Some of OIA’s international investments last year include the American company Our Next Energy (ONE), which specialises in innovative battery technology for electric vehicles; Electric Hydrogen (EH2), which develops low-voltage, high-current density electrolysers; and Hysata, an Australian company that develops electrolyzers to produce green hydrogen. Among the global funds invested in last year are the Platinum Investment Fund, which invests in manufacturing, chemical materials, and distribution; the Global Infrastructure Fund, which invests in North America, Europe, Asia, the Pacific Ocean, and Latin America; and the Chinese fund 5Y, which focuses on consumer innovation, information technology, and life sciences.

The National Development Fund spent approximately OMR2.1 billion on investments by broadening and improving current projects, completing the construction of projects in progress, and approving and developing new projects. It also announced the culmination of six national projects that varied in terms of locations and sectors. The investment value of these projects was over OMR 4 billion.

“In concert with the government’s economic diplomacy to improve strategic partnerships with partner countries, we established the second Spain Oman Private Equity Fund to our strategic joint ventures, after the first fund achieved excellent results,” OIA said in its annual report.

“We came to an agreement with Indian representatives to launch a third joint venture, after the first and second funds achieved rewarding returns on investment. We supported efforts by the Ministry of Foreign Affairs to strengthen international relations with various countries by sending investment attachés in the United States, Germany, the United Kingdom, and the Kingdom of Saudi Arabia,” the OIA President said in its annual report.