Muscat – Oman Investment Authority (OIA) has generated more than ten per cent average annual return from its investments in 40 countries. The authority also committed 35 new investments and exited others with profitable returns since its establishment in June 2020.

These announcements were made in OIA’s first annual report covering its operations and investments from June 4, 2020, to December 31, 2021.

In the report’s opening remarks, H E Sultan al Habsi, Minister of Finance and chairman of OIA, said that despite the challenges and events witnessed during the period covered in the report, development efforts have remained on track with a clear focus on goals.

He noted that, on the contrary, opportunities emerged which were leveraged to the maximum.
“Everybody is satisfied with the achievements made by OIA within this short period, a result of the dedicated focus on contributing to the GDP, maximising returns on investments, and improving governance of state-owned companies.”

H E Abdulsalam al Murshidi, executive president of OIA, added that the authority’s key achievements from June 2020 to December 2021 are reflected in the average annual return of 10.3 per cent. “There was an addition of 35 new investments to OIA’s investment portfolio in private equity markets, in addition to exiting other investments with profitable returns.”

The report sheds light on OIA’s key performance overview, including restructuring of Boards of Directors of OIA companies and the appointment of national experts and specialists from various public and private sectors as chairpersons.

The report also highlights the addition of new investments to OIA’s portfolio currently spread over 40 countries. The portfolio now includes investment in SpaceX, a US company specialising in space exploration technologies, establishment of an investment fund with China Merchant Bank International with focus on future technologies, establishment of Muscat Stock Exchange pursuant to Royal Decree No 5/2021, and investment in Mycotechnology, a US company specialising in alternative food using the latest technologies.

The report lists the returns OIA earned from exiting certain investments, including its complete exit from Cognate BioServices, a US company engaged in manufacturing medical equipment, getting 3.15 times in return with an internal rate of return (IRR) of 42 per cent, complete exit from Migros Stores in Turkey where returns on investment increased by 1.11 times with an IRR of 1.6 per cent, complete exit from RAK Ceramics in the UAE earning 1.13 times in return on investment and an IRR of 2.1 per cent, partial exit from US information technology firm First Data with 1.34 times in return on investment and an IRR of 2.6 per cent.

Among the joint investments established in partnership with several friendly nations is Vietnam-Oman Investment which entered a new investment agreement with CMES Company, a significant player in the renewable energy market developing rooftop solar power systems.

Oman Brunei Investment Company increased its capital to US$200mn by utilising available opportunities and expanding its existing investments in Brunei and obtaining the Board of Directors’ approval to establish a private school in Muscat in partnership with Amity Group, a renowned educational services institution.

Additionally, Oman Spain Fund for Private Equity launched a new investment in Symborg, an international firm engaged in agricultural biotechnology.