Muscat: The Oman Investment Authority (OIA), the investment arm of the Sultanate of Oman, reported a significant increase in its assets under management (AUM) from OMR19.2 billion at the end of 2023 to OMR17.9 billion at the close of 2022, as detailed in the authority's latest annual report.
In addition to this impressive growth, the OIA has also recorded profits exceeding OMR1.7 billion in the fiscal year 2023. This financial success is a testament to the authority's commitment to managing, investing, and expanding the Sultanate's assets both locally and internationally.
Furthermore, the OIA has contributed OMR800 million to the State's General Budget, marking a significant increase from previous years. Since its inception in 2016, the OIA's cumulative contributions to the Budget stand at OMR6 billion, as highlighted by Abdulsalam Al Murshidi, the President of the OIA, in the annual report.
This contribution to the State's budget was achieved solely through profits and returns, without the necessity to liquidate or sell any assets to generate additional liquidity, as further explained by Al Murshidi.
The OIA's investment portfolio is geographically diverse, encompassing investments across every continent and a broad spectrum of sectors, including food and fisheries, energy, logistics, Information and Communication Technology (ICT), public services, financial and investment services, tourism, mining, manufacturing, and aviation. This strategic diversification plays a crucial role in fostering sustainable economic development and aligns with Oman's vision of enhancing its appeal as an investment destination.
Al Murshidi also highlighted the OIA's efforts to boost employment opportunities for Omani citizens. In 2023, the OIA and its affiliated companies hired 1,307 Omani nationals, surpassing the target of 800 new positions set for the year. This achievement underscores the authority's dedication to national development and the well-being of its citizens.
Moreover, the OIA has initiated several new training and qualification programs, including the Oman Scholars program for outstanding students, which received royal endorsement, and the OIA Academy for Training and Development. These initiatives underscore the authority's commitment to investing in human capital and fostering a skilled workforce.
In terms of enhancing domestic value, the OIA and its companies have focused on increasing In-Country Value (ICV), particularly in support of small and medium enterprises (SMEs). The total expenditure on SMEs reached OMR202.6 million, with a significant portion allocated to Riyada Card holders, amounting to OMR106.7 million. This investment has contributed to a 16.8 percent share of SMEs in the total expenditure on the supply chain, demonstrating the OIA's commitment to supporting local businesses and economic growth.
The accomplishments of 2023 are a reflection of the national talent that the OIA is proud to nurture, according to Al Murshidi. The workforce's experience, ambitions, and confidence have been in perfect harmony with the OIA's mission as the sovereign wealth fund of the Sultanate of Oman, meeting and exceeding the authority's goals and national objectives.
The Office of Investment and Asset Management (OIA) has concentrated its efforts on the geographic and sectoral diversification of its international and local investment portfolios, aiming to maximize returns while mitigating risks. This strategy has involved linking certain external investments to specific local sectors by transferring advanced technology to the local market. The Private Markets' division of OIA's Future Generation Fund (FGF) has allocated investments to 13 international funds across various sectors. Additionally, the division has engaged in direct investments, while the Public Markets' division of FGF has continued to invest in markets across multiple countries worldwide.
Among the international investments made by OIA in the previous year were those in American companies such as Our Next Energy (ONE), which specializes in innovative battery technology for electric vehicles; Electric Hydrogen (EH2), which develops low-voltage, high-current density electrolysers; and Hysata, an Australian company focused on developing electrolyzers for the production of green hydrogen. Globally, the division invested in funds such as the Platinum Investment Fund, which targets investments in manufacturing, chemical materials, and distribution; the Global Infrastructure Fund, which focuses on investments in North America, Europe, Asia, the Pacific Ocean, and Latin America; and the Chinese fund 5Y, which concentrates on consumer innovation, information technology, and life sciences.
The National Development Fund allocated approximately OMR2.1 billion towards investments, which included the expansion and enhancement of existing projects, the completion of projects in progress, and the approval and development of new projects. Furthermore, the fund announced the successful conclusion of six national projects, each with a diverse range of locations and sectors, with an investment value exceeding OMR 4 billion.
In line with the government's economic diplomacy efforts to foster strategic partnerships with partner countries, OIA has established the second Spain Oman Private Equity Fund as part of its strategic joint ventures, following the successful outcomes of the first fund. Additionally, OIA has entered into an agreement with representatives from India to launch a third joint venture, following the successful returns from the first and second funds. The division has also supported the Ministry of Foreign Affairs' initiatives to strengthen international relations with various countries by deploying investment attachés in the United States, Germany, the United Kingdom, and the Kingdom of Saudi Arabia.
