MUSCAT : The Oman Investment Authority (OIA) has brought together an alliance of sovereign wealth and investment funds to establish a fund targeting $500 million in investments in Central Asia and the Caucasus, the authority said.

The Central Asia and Caucasus Investment Fund, with a target size of about 192.2 million Omani rials, is scheduled to have its formal establishment agreement signed in early November. An Omani company led by Omani professionals is expected to manage it.

The fund will seek capital from sovereign wealth funds, investment institutions and strategic investors in international markets, targeting opportunities in logistics, renewable energy, mining, food, agriculture, healthcare and other industries.

The initiative forms part of OIA’s efforts to expand its international investment footprint and deepen strategic partnerships. It aims to build long-term investment relationships, support economic diversification and knowledge transfer, and broaden the geographical reach of the authority and its subsidiaries.

Mulham bin Bashir Al Jarf, OIA’s deputy president for investment, said the authority’s leadership of the alliance reflected international sovereign wealth funds’ and investment institutions’ confidence in its ability to build strategic partnerships and attract capital to promising markets.

He said the fund would strengthen economic and investment ties between Oman and countries in the region, opening opportunities for cooperation and joint investments while expanding Oman’s international economic presence.

OIA viewed such partnerships as a means of strengthening economic integration with international partners, Al Jarf said. Its overseas investments also sought to expand cross-border investment relationships and build lasting economic ties that served shared interests.

The authority said Kazakhstan, Uzbekistan, Azerbaijan, Kyrgyzstan and Tajikistan together represented a market of more than 86 million people.

Foreign direct investment inflows into those markets rose 16.6% to about $4.64 billion, or 1.78 billion rials, by the end of 2025, according to figures cited in the release.

The five countries recorded about 37.36 million inbound tourist arrivals during the same year, creating opportunities in logistics, infrastructure and supporting services, OIA said.

Their natural resources include oil, gas, gold, copper and uranium, alongside hydropower potential and other resources.

The authority said the region’s average gross domestic product growth reached about 7% in 2025, compared with global growth of 3.5%, citing the International Monetary Fund.

OIA subsidiaries Asyad Group, Minerals Development Oman and OQ Group are studying investment opportunities in Central Asian logistics, mining and energy markets.

The fund is intended to help those companies expand their operations and apply their sector expertise in new markets, while supporting investment, development and the transfer of knowledge.

OIA said the initiative would turn institutional relationships and international partnerships into investment projects, strengthening economic links with Central Asia and positioning Oman as a gateway to Gulf and African markets.

It also reflects what the authority calls the “Omani dimension” of its overseas investment strategy: using international investments to support the domestic economy, open markets for its companies, transfer expertise and knowledge, and attract foreign investors to Oman.

The new fund builds on OIA’s existing investment partnerships in the region.

These include the Omani-Uzbek Investment Company, known as UzOman, established in 2009 through a partnership with Uzbekistan’s Fund for Reconstruction and Development.

OIA also formed a partnership in 2025 with the government-owned Azerbaijan Investment Holding to invest across sectors in Oman and Azerbaijan, followed by an investment partnership in 2026 with Kazakhstan’s sovereign wealth fund, Samruk-Kazyna.

The authority said these relationships provided a foundation for further long-term investment cooperation with institutions across the region.

OIA manages more than 23 billion rials in assets across three main portfolios. About two-thirds are invested domestically through the National Development Portfolio and Future Fund Oman to support economic growth, diversification and investment in promising sectors.

The remaining third is invested internationally through the Future Generations Fund, which seeks sustainable financial returns and risk diversification through long-term global investments, while supporting the transfer of technology and knowledge to Oman’s domestic industries.

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