Oman Investment Authority's $5.2 Billion Investment Plan Unveiled
Oman Investment Authority (OIA) has unveiled the 'Future Fund Oman' with a hefty capital injection of $5.2 billion, earmarked to be disbursed over the next half-decade at a rate of $1 billion per annum.
This initiative is poised to channel 90% of its financial resources directly into backing commercially and economically viable large-scale projects within Oman's borders.
Another 7% slice of the fund will be dedicated to bolstering small and medium-sized enterprises (SMEs), while the remaining 3% is slated for investment in startup ventures, as per a statement released by the Oman Investment Authority on Wednesday.
The primary objective of the fund, as outlined by the authority, is to serve as a linchpin for economic diversification.
It aims to galvanize the private sector, attract Foreign Direct Investment (FDI), empower SMEs, and nurture venture capital initiatives, thereby charting a course for a more robust and varied economy.
Last year, an S&P report underscored Oman's economic dependency on the oil sector, which currently contributes around 30% to the country's GDP, 60% to its goods exports, and 70% to government fiscal receipts.
However, the agency anticipates a boost in hydrocarbon production in 2024 and 2025, which could provide crucial support to the economy.
Established in 2020 with the mandate to enhance the management of the government's financial assets and public enterprises, OIA is also contemplating divesting some of its stakes in various companies.
The authority oversees its assets through two key funds, namely the Future Generations Fund (FGF) and the National Development Fund (NDF).
Source: Zawya