MUSCAT : The OIA’s initiatives to enhance the governance of its local companies, reduce their debt, and improve financial sustainability have contributed to this positive development.

One of OIA’s most notable achievements has been the reduction of debt among its subsidiary companies – from RO 11.4 billion in 2021 to RO 9.2 billion by the end of the third quarter of 2024. This reduction, led by major entities such as OQ Group, has improved key financial indicators including the net debt-to-earnings ratio, while supporting the long-term financial and operational resilience of these companies.
The Duqm Refinery and Petrochemical Industries Company also passed the lender reliability test earlier this month, allowing it to issue shareholder guarantees exceeding RO 800 million, further strengthening investor confidence.

In the area of enhancing financial governance and the independence of subsidiary companies, the Authority worked to reduce government guarantees on loans from major companies such as OQ, Asyad, and Nama. The total guarantees decreased from RO 3.2 billion in 2021 to RO 1.8 billion in 2024. This was in addition to halting the issuance of government guarantees on new loans. This decision represented a strategic shift that contributed to reducing financial risks to the state and enhanced the ability of companies to rely on their capabilities in investing and borrowing to finance new projects.

To further strengthen oversight, OIA introduced a unified governance charter in 2022, providing a comprehensive framework for sound decision-making, debt management, and operational transparency across all levels of subsidiary management. The charter ensures that companies align their performance with Oman Vision 2040, promoting efficient resource use and sustainable economic development.

The Authority has also focused on enhancing corporate transparency, requiring subsidiaries to regularly disclose financial performance, which has helped build trust with international credit agencies and financial institutions. Furthermore, through its strategic partnerships, OIA has played an active role in attracting foreign investment into priority sectors, reinforcing foreign currency reserves and supporting economic diversification.

These wide-ranging measures highlight OIA’s critical role in strengthening Oman’s economic foundations, bolstering investor confidence, and positioning the Sultanate as a reliable and attractive destination for global investment.

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