Muscat: In its latest report, the Global SWF Foundation said the performance of the Oman Investment Authority in 2025 demonstrates the effectiveness of the Sultanate’s post-2020 sovereign wealth strategy, particularly the transfer of government-owned companies under the OIA’s management.

According to the report, the OIA has developed a distinctive model that goes beyond the traditional role of sovereign wealth funds. While enhancing the profitability of state-owned enterprises, the authority has simultaneously attracted foreign capital, strengthened local investment, supported job creation, and developed domestic supply chains.

The foundation highlighted OIA’s approach of reshaping state ownership through public offerings, strategic partnerships, and direct asset sales, allowing the government to retain influence in strategic sectors while recycling capital into higher-value investments.

Among the most notable success stories cited was the transformation of OQ Group. Following its transfer to OIA in 2020, the group underwent a major restructuring programme focused on debt reduction, operational integration, and capital recycling. As a result, OQ reduced its total debt by 48 per cent, from RO 5 billion to RO 2.7 billion, released RO 2.2 billion in government guarantees, and improved its net debt-to-operating-profit ratio from 8.6 times to 0.6 times by 2025. The group also secured investment-grade ratings from Fitch and Standard & Poor’s.

OQ Refineries and Petrochemicals Company was another key example highlighted in the report. After years of operational and financial challenges, the company recorded its first-ever profits, generating cumulative earnings of RO 474 million between 2021 and 2025. Production capacity increased from 80 million barrels in 2021 to 93 million barrels in 2025, while preparations are underway to repay outstanding loans worth RO 2.7 billion.

The report also pointed to major improvements within the food security sector. OIA led the restructuring and integration of Oman Food Investment Holding Company “Nataj” and Oman Fisheries Development Company, resulting in a 93 per cent increase in fisheries portfolio revenues and more than 23 per cent growth in Nataj’s revenues. Companies such as Mazoon Dairy and Al Wusta Fisheries Industries recorded performance improvements exceeding 100 per cent.

Mazoon Dairy, which had previously faced financial and operational pressures, achieved financial break-even in 2024 and reported operating profits of RO 3 million. Its revenues rose by 15 per cent between 2024 and 2025, driven by stronger sales and export growth.

Meanwhile, Asyad Drydock Company delivered strong operational gains following efficiency improvements and diversification efforts. Between 2021 and 2025, the company recorded a compound annual growth rate of 65.9 per cent in net profit and 16.2 per cent in revenue. In 2025 alone, it completed 258 projects, marking an 11 per cent increase compared to the previous year.

The Oman Convention and Exhibition Centre was also recognised for achieving its first operating profit since opening in 2016. Annual income more than doubled from RO 3.4 million in 2022 to over RO 7.6 million in 2025, while reducing dependence on government support.

Global SWF noted that nearly two-thirds of OIA’s assets are invested within Oman, reflecting its strong focus on national development. The authority’s international investments are concentrated in North America, Europe, Asia-Pacific and other global markets, generating returns that support the state budget, strengthen reserves and fund local development projects.

The report further highlighted OIA’s evolving approach to international partnerships, describing them as a blend of sovereign investment and economic diplomacy. Strategic partnerships with countries including Kazakhstan, Turkey, Jordan and Azerbaijan are helping bring capital, technology and industrial expertise into Oman across sectors such as energy, logistics, healthcare, manufacturing, food security and information technology.

The Oman Future Fund was also cited as a major driver of investment. By the end of 2025, the fund had received 986 applications and approved 186 projects worth RO 1.72 billion, including RO 743 million in foreign investment.

In addition, the report praised OIA’s commitment to local content development. Spending on small and medium enterprises reached RO 278 million in 2025, including RO 186.4 million directed to businesses holding the “Riyada” card. SMEs accounted for nearly 20 per cent of total supply chain spending, supported by initiatives such as the “Fursah” platform, which provides local suppliers with early access to procurement opportunities.