Muscat: Oman Investment Authority (OIA) in its efforts to develop the national economy and attract foreign investments, officially launched OMR2 billion Future Fund Oman.
The fund will be utilised over a five-year period at a rate of OMR400 million every year.
It will allocate 90 percent of its capital for new or existing investment projects and the remaining 10 percent will be used to fund small and medium enterprises (SMEs) and for startups.
The fund offers financing investment solutions to various investor categories. They include private sector organisations, business owners, SMEs, foreign investors, and startups.
Targeted sectors
With the exception of oil and gas and real estate in local direct investments, the fund will focus on eight targeted sectors, including tourism, manufacturing, green energy, information and communication technologies, ports and logistics, mining, fisheries, and agriculture.
Abdulsalam Mohammed Al Murshidi, Chairman of OIA, said that Future Fund Oman has been established in line with government policies and strategies aimed at enhancing targeted economic sectors.
He explained that 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.
He emphasized that this measure would further enhance collaboration and integration with the private sector, provide support to SMEs, and strengthen venture capital in the Sultanate of Oman.
According to him, Future Fund Oman is the third portfolio of OIA, in addition to the National Development Fund and the Future Generations Fund.
With their extensive investment expertise, OIA will manage the fund and showcase the capabilities of local talents who have already proven themselves as successful wealth managers and investors, delivering impressive investment returns.
Mulham Al Jarf, Deputy Chairman for Investment at OIA, stated that the fund would be governed by OIA's governance practices, following the best international standards to ensure efficiency and flexibility in achieving the desired financial and economic objectives. It will complement the existing government financing and investment ecosystem, which involves various institutions such as the Development Bank, SMEs Development Fund, Rakiza Fund, and Oman Technology Fund.
He further mentioned that Future Fund Oman provides flexibility in choosing the type of investment participation, whether through direct financing at market rates or equity investments with the private sector, ensuring a balanced approach across multiple sectors.
In line with the principles of governance and transparency, the fund will adhere to OIA's quality standards, which have already positioned OIA as the second-ranked globally in the Governance and Sustainability Development Index for the period between 2022 and 2023.
The governance structure of the fund will consist of two committees: the Investment Committee and the Advisory Committee. The Investment Committee, which is made up of representatives from OIA, the Ministry of Finance, and independent entities, will be responsible for approving new investments, follow-on investments, and divestments. On the other hand, the Advisory Committee will oversee and monitor investments in SMEs and startups.
In order to achieve the national objectives of the Fund, the Ministry of Finance will collaborate closely with OIA in managing local projects. The SMEs Development Authority will also be a member of the Advisory Committee, providing valuable insights and advice to the Investment Committee. Furthermore, the management of investments allocated for SMEs and startups will be handled by the Oman National Investment Development Co. (Tanmia), ITHCA Group, Omantel, and Cyfr Capital.
To enhance convenience, transparency, and streamline processes, interested investors can apply directly through the electronic platform (www.Futurefund.om). This platform has been designed to provide easy access to all relevant information regarding financing requirements.
To qualify for investment opportunities and determine the appropriate financing model, investors will need to create an account on the platform and answer a set of questions. Once the financing requirements are met, applicants will be required to fill out the designated Investment Opportunity Form to complete the application process. The application will then be forwarded to the relevant team for consideration. Please note that the review and analysis of an application may take up to three months after submission.
Applicants will receive regular updates regarding the progress of their applications. The specific documents needed will vary depending on the nature and stage of the project. However, in general, these documents must be supported by a comprehensive feasibility study. This study should include technical information, current and projected financials of the project, the applicant's past financial statements, and personal identification documents.
