Muscat: On Wednesday, January 17, 2024, the Oman Investment Authority (OIA) officially launched the Oman Future Fund, which has a capital of OMR 2 billion. This capital will be divided over five years, with an annual allocation of OMR 400 million. The fund aims to support new or existing direct investment projects that are commercially and economically viable, as well as meet the results of the feasibility study. Additionally, it will allocate 10 percent of its capital to small and medium enterprises and emerging companies.
The Oman Future Fund provides its services to various stakeholders, including private sector institutions, business owners, small and medium-sized companies, and foreign investors. It focuses on eight targeted sectors, namely tourism, industry and production, green energy, information and communications technology, ports and logistics services, mining, fisheries, and agriculture.
Chairman of the Oman Investment Authority, His Excellency Abdul Salam bin Mohammed Al Morshedi, highlighted that the establishment of the Oman Future Fund aims to advance the targeted economic sectors. The fund is expected to play a significant role in stimulating the growth of the national economy and serve as a reliable partner for local and international investors looking to expand their projects in Oman or enter the Omani market.
Furthermore, His Excellency emphasized that the Oman Future Fund will enhance integration with the private sector, support small and medium enterprises, and stimulate the venture investment system in the Sultanate of Oman. He also mentioned that the fund will serve as a third portfolio for the agency, in addition to the existing National Development and Generations investment portfolios.
The chairman of the Oman Investment Authority has emphasized that the Authority will utilize its extensive investment experience to effectively manage the fund. This further highlights the exceptional competencies possessed by Oman and its proven track record in successfully managing, investing, and developing funds, resulting in favorable returns.
In a statement to reporters, His Excellency the Chairman of the Oman Investment Authority stated that the Oman Future Fund will actively support all initiatives aimed at establishing projects within the Sultanate of Oman. These projects can be undertaken by government companies, private sector entities, or foreign private sector initiatives.
Furthermore, His Excellency highlighted the Fund's versatility and ability to provide various forms of financing, including capital partnership and lending to these projects. It is worth noting that there are currently no funds or portfolios capable of financing amounts exceeding OMR 5 million. However, the Oman Future Fund will have the capacity to finance projects individually up to OMR 100 million, with a maximum partnership capital of 40 percent. The private sector will play a leading role in driving these projects forward.
The Chairman of the Oman Investment Authority emphasized the importance of economic feasibility studies conducted by neutral parties for projects seeking financing from the Oman Future Fund. Additionally, the progress of these projects will be facilitated through a digital platform, streamlining the process and saving valuable time and effort for project owners.
Chairwoman Halima bint Rashid Al Zaria, Her Excellency, stated that by allocating 10 percent of the Oman Future Fund to small and medium enterprises, it will facilitate access to alternative financing options for emerging companies that are driven by innovation and technology, as well as small and medium enterprises.
The fund will adhere to the governing regulations set by the Authority, which incorporates the best international practices to ensure effectiveness and adaptability in achieving the desired financial and economic objectives. This fund will complement the existing financing and investment support system provided by the government through various institutions such as the Oman Development Bank, the Small and Medium Enterprises Portfolio, the Rakaza Fund, and the Oman Technology Fund. The flexibility in determining the type of contributions to selected investments, whether through direct financing at market cost or through capital partnership with the private sector, will ensure a balanced distribution of funding across sectors rather than focusing on a specific sector.
