MUSCAT : Of this, the Fund contributed RO 333 million, while foreign capital injections reached RO 885 million, reflecting growing global confidence in Oman’s investment environment.

A report by the Oxford Business Group reviewed the Fund’s performance in 2024, highlighting its role in advancing Oman Vision 2040 by promoting economic diversification and expanding the national investment base.

Established by the Oman Investment Authority (OIA) with a capital of RO 2 billion over five years, the Future Fund Oman is a strategic instrument to fuel sustainable growth and economic resilience. The Fund focuses on high-potential sectors including industry, renewable energy, ICT, agriculture, fisheries, tourism, and emerging fields such as e-commerce, fintech, and electric vehicles.

The report highlighted that the Fund’s role goes beyond injecting capital into projects. Rather, it seeks to empower small and medium-sized enterprises (SMEs), support venture capital firms, and stimulate the innovation ecosystem. This aligns with the Fund’s structure, which allocates 90 percent of its capital to major projects, while 10 percent is allocated to supporting SMEs and venture capital firms. Through this strategic allocation of capital, the Fund complements the National Development and Generations portfolios.

The report praised the recent legal and regulatory improvements witnessed by the Sultanate of Oman aimed at attracting foreign investment and diversifying sources of income. These improvements include the introduction of a new law allowing 100 percent foreign ownership in most sectors, launch of the “Invest in Oman” platform as a unified electronic platform to facilitate licensing procedures, and updating the list of activities in which foreign ownership is prohibited – reducing it to 123 activities. Other efforts included the implementation of the Privatisation Law, which allows the transfer of government assets to the private sector and international investors through public offerings.

The report indicated that, as a result of these improvements and OIA efforts, the Fund was able to contribute effectively to the national economy through unique projects approved during its first year. These ranged from investment funds, major national projects, and projects affiliated with small and medium-sized enterprises and startups.

The report spotlighted key partnerships with Chinese firms, notably the IDG Oman Fund – a $200 million fund with IDG Capital Group, focused on ICT, renewable energy, and electric vehicles, aimed exclusively at investments within Oman – and the EWTP Oman Fund – a $250 million fund with EW Partners, targeting technology, tourism, agriculture, and clean energy while attracting Chinese firms to base regional operations in Oman, boosting local employment and supply chains.

The Fund is also supporting the United Solar Polysilicon Factory in Sohar Free Zone—the largest polysilicon plant outside China with a capacity of 100,000 tons. Once operational, it could enable Oman to capture 4.4 percent of the global polysilicon market, valued at $37.3 billion.

The Fund has also backed a number of innovative SMEs and digital startups, including Qpay – Oman’s first accredited “Buy Now, Pay Later” platform; Beema – a digital insurance provider; and Sarab – a drone traffic management system.

As part of its 2024–2028 strategy, the Fund’s approved projects are expected to create over 1,600 direct jobs, reduce dependency on oil and gas, and promote entrepreneurship and technology-led innovation.
The Oxford Business Group concluded that the Oman Future Fund is an effective toolfor implementing Oman’s strategy to transition to a diversified and sustainable economy based on innovation and quality partnerships. This will enhance its position as an attractive regional and global investment hub and consolidate the long-term investment philosophy pursued by the Oman Investment Authority.

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