Assets of Oman investment Authority exceed RO 1bn in 2023

Saudi sovereign wealth fund’s assets exceed $594

Muscat: Oman Investment Authority (OIA) announced that its assets have grown by over RO 1 billion during 2023, reaching a total of RO 19.240 billion.

OIA achieved profits that surpassed RO 1.7 billion with a rate of 9.95% investment returns compared to 8.8% in the previous year.

This was announced during the press conference held by the authority today in Muscat.

All the while, OIA continued its contribution to the State’s General Budget, amounting to more than RO 6 billion between 2016 and 2023. OIA and its companies also created more than 1,300 job opportunities for Omanis, as stated in OIA’s 2023 annual report. This report reflects the principles and national goals of Oman Vision 2040, focusing on enhancing transparency, governance, and institutional performance. Furthermore, OIA reiterates its commitment to having continued communication with society.

OIA focused on diversifying its foreign and local investments geographically and across various sectors to maximize returns and minimize risks. It also brought an Omani angle in its international investments to attract value and technology to targeted local sectors.

OIA’s Future Generations Fund (FGF), is responsible for the OIA’s investments abroad. In 2023, it invested in 13 global funds operating across multiple sectors in the private markets sector. It also engaged in diversified direct investments. Meanwhile, the public markets sector, part of FGF, continued investing in various countries worldwide, achieving an average return of 9.8%, surpassing the target return of 5%.

Among OIA’s direct foreign investments is Electric Hydrogen (EH2), a company developing electrolyzers with higher current densities and lower voltages. OIA also invested in Hysata, an Australian company contributing to the production of green hydrogen, as well as Our Next Energy (ONE), a US company specializing in manufacturing vehicle batteries, electric vehicles, and energy storage systems.

As for global funds, OIA invested in the Platinum Investment Fund, which focuses on the industrial, chemical, and distribution sectors; the Global Infrastructure Fund, investing in North America, Europe, Asia Pacific, and Latin America; and the Chinese Five Way Fund, which concentrates on consumer innovation, information technology, and life sciences.

Continuing its efforts to reduce OIA Companies’ debt and mitigate financial risks, OIA successfully paid RO 2.4 billion, including RO 300 million prepaid in 2023. These efforts contributed to raising the Sultanate of Oman’s credit rating by international rating agencies.

As part of its commitment to achieving economic diversification, investment spending in the local sectors of the National Development Fund (NDF) increased to approximately RO 2.1 billion, surpassing the target of RO 1.9 billion. This was achieved through expanding and enhancing current projects, completing ongoing projects, approving and developing new projects, and announcing the completion of six national projects in diverse geographical and sectoral areas.

Continuing the divestment plan to achieve various national goals, OIA and its companies successfully completed nine divestments in 2023, surpassing the planned eight divestments. These included both direct sales and public offerings on the Muscat Stock Exchange (MSX). This had a positive impact on the trading volume at MSX and attracted foreign investments.

OIA and its companies continued their steadfast efforts to maximize In-country Value (ICV) and enhance the role of SMEs. The total amount spent on SMEs amounted to RO 202.6 million, with RO 106.7 million going to holders of the Entrepreneurship Card “Riyada”. Furthermore, OIA companies spent more than RO 42 million on services and products in the mandatory list during 2023.

Sheikh Nasser Sulaiman Al Harthy, OIA’s Deputy President for Operations said that the authority generated more than 1,300 job opportunities for Omanis in OIA and its affiliate companies with a total omanization rate of 76.9%.