Muscat – The Oman Investment Authority (OIA) issued ‘the Code of Governance for OIA Entities’ on Wednesday, which will further improve their operations, enhance performance, and align them with the sustainable development plans and strategic and economic goals in line with Oman Vision 2040.

‘By issuing the code of governance of state-owned companies, we aim to organise the decision-making process, and define roles and responsibilities in it. This will enable the monitoring of its performance, activate accountability, and enhance transparency around its results and disclosures,’ OIA stated.

The code encourages efficient utilisation of human and financial resources and assets, while also having the entities serve the purpose of bringing a balance between economic and strategic goals. ‘Further on, the code organises practices of accountability, as it includes basic policies and principles that guide the operations of these companies in regard to their various commercial activities.’

H E Abdulsalam al Murshidi, the President of OIA, stated that OIA’s system as decreed has been given the greenlight to implement the Code of Governance of state-owned enterprises as per best practices. “It is aspired that the Code contributes in enhancing the performance of these companies financially and operationally, increasing their productivity and finding a comprehensive decision-making system within them,” he said.

As per the code, OIA will be appointed as a shareholder in the companies and not as an entity of the government. ‘Thus, the legal relation between the OIA and the companies will be governed indiscriminately by the Private Companies Law.’

The code also ensures the application of governance practices based on the principles of transparency, accountability, responsibility and efficiency. ‘Moreover, it outlines penalties for any breach of the Code of Governance, as well as not adhering to any established law,’ OIA said.

‘In agreement with other shareholders, OIA may outline the timeframe or economic standards that allow OIA to sell its shares, if reached. The Code also obligates all OIA entities to clearly outline their purpose; and in case they deviate from the purpose or fail in achieving it, OIA will set up an evaluation scheme to determine the next course of action,’ the authority stated.