Muscat – To invigorate the economy and provide vital support to startups, Oman Investment Authority (OIA) will launch Oman Future Fund on January 17.

At a meeting of the Council of Ministers in 2023, His Majesty Sultan Haitham bin Tarik gave directives to establish the fund with a capital of RO2bn.

The fund is aimed at increasing economic activity and encouraging the private sector to enter into partnerships or finance investment projects in the sectors of economic diversification targeted by Oman Vision 2040.

His Majesty the Sultan directed allocation of part of the fund’s capital to stimulate SMEs and startups registered with the Authority for Small and Medium Enterprises Development.

Commenting on the fund, Nasser Said Salim, a local investor, said it will stimulate economic activity and enhance private sector engagement. “It will create favourable investment conditions in light of the global competition among countries for supporting and financing startups.”

He added that the fund will play a major role in improving infrastructure, developing businesses and increasing job opportunities, while improving living standards. “It will improve the business environment and foster growth of emerging and innovative firms.”

Economic analyst Sultan Saif al Rawahi described the fund as a qualitative shift in the Omani economy.

He explained that the fund will play a pivotal role in instilling confidence in Oman’s investment market, attracting foreign investments and overcoming challenges faced by investors.

“I believe the fund aligns with Oman Vision 2040, aiming to build a diversified and sustainable economy. It represents an effective tool for financing projects, and accelerating project implementation. Moreover, the fund will create a lot of job opportunities for young individuals.”

Institutions such as International Monetary Fund (IMF), World Bank and global credit rating agencies have praised the sultanate for remarkable progress in its economy in 2023, Rawahi added. “I am optimistic that Oman government will achieve better economic growth this year as well.”