Muscat – Oman Investment Authority (OIA) officially launched Oman Future Fund on Wednesday to serve a wide range of investment categories.
The fund has a capital of RO2bn that will be utilised over a five-year period – RO400mn every year. The fund will allocate 90% of its capital to directly invest in new or existing projects that prove to be commercially and economically viable. The remaining 10% is divided into 7% allocated to SMEs and 3% for startups.
It will offer funding and investment solutions to various investor categories, including private sector organisations, business owners, SMEs, foreign investors and startups. With the exception of oil and gas and real estate in direct local investments, the fund will focus on eight targeted sectors – tourism, manufacturing, green energy, information and communication technologies, ports and logistics, mining, fisheries and agriculture.
The launch is in line with Royal directives to realise the objectives and mandates of OIA and drive its efforts further to develop the national economy and attract foreign investments.
Launching the fund, Abdulsalam al Murshidi, President of OIA, emphasised the fact that it was established in line with government policies and strategies aimed at enhancing targeted economic sectors. “It comes as a key enabler of economic diversification and a credible partner to local and international investors who are considering investing and expanding their businesses into Oman and becoming part of the Omani business community.”
It will help in further empowerment and integration of the private sector, supporting SMEs, and bolstering venture capital in the sultanate.
Murshidi informed that Oman Future Fund is OIA’s third portfolio; the two existing portfolios are National Development Fund and Future Generations Fund.
“With its extensive investment expertise, OIA will manage the fund and demonstrate the capabilities of local talents who have already proven to be successful wealth managers and investors with a track record of accomplishing good investment returns.”
According to Mulham al Jarf, Deputy President for Investment at OIA, the fund will be governed by the authority based on international best practices to ensure efficiency and flexibility in achieving the desired financial and economic objectives of setting it up.
“The fund will complement the existing government financing and investment ecosystem that currently involves a number of institutions such as Oman Development Bank, SMEs Development Fund, Rakiza Fund, Oman Technology Fund, etc. Oman Future Fund offers flexibility in choosing the type of investment participation, whether through direct financing at market rates or equity investments with the private sector in a balanced manner not limited to one sector alone,” Jarf elaborated.
To achieve the fund’s national objectives, the Ministry of Finance will act as a strategic partner to OIA in managing the direct local projects, while Authority for Small and Medium Enterprises Development will serve as a member in the Advisory Committee to provide insights and advice to the Investment Committee. Additionally, Oman National Investment Development Company (Tanmia), ITHCA Group, Omantel and Cyfr Capital will manage investments allocated for SMEs and startups.
Interested investors can apply directly via the electronic platform futurefund.om