MUSCAT: The Oman Investment Authority (OIA) has emerged as one of the central engines driving the Sultanate of Oman’s economic transformation, delivering solid financial performance and spearheading diversification under the framework of Oman Vision 2040.

In its progress report, from 2021 to 2024, OIA’s reform and investment strategies have not only boosted profitability among state-owned enterprises (SOEs) but also positioned Oman as a rising regional hub for innovation, clean energy and private sector growth.

At the heart of OIA’s progress lies its ambitious transformation of state-owned enterprises, a cornerstone of Oman’s economic restructuring agenda. Over the past four years, the Authority has recorded cumulative profits of RO 7.3 billion, signalling a sharp turnaround in operational efficiency and corporate governance.

This profitability has been underpinned by RO 9.7 billion in capital expenditure, channelled into projects that fuel economic diversification and enhance collaboration with the private sector. By rationalising debt and enforcing financial discipline, OIA successfully reduced total SOE debt from RO 11.4 billion to RO 8.8 billion — a move that not only strengthened corporate balance sheets but also contributed to improving Oman’s sovereign credit ratings.

Beyond fiscal achievements, OIA’s mandate is deeply rooted in promoting inclusive growth and in-country value. In 2024 alone, its initiatives created 1,393 new jobs for Omani nationals, significantly surpassing its annual target of 800. This strong performance underscores OIA’s role in national employment generation and capacity building.

The Authority also achieved RO 265.5 million in local content spending last year, reinforcing its commitment to empowering small and medium enterprises (SMEs) and local suppliers. Through structured initiatives such as mandatory procurement lists, supplier development programmes and business allocation opportunities, OIA is driving entrepreneurship and ensuring that national companies play an active role in major projects.

Economic diversification remains a strategic imperative for OIA and its recent efforts reflect a shift from state dependence to private sector empowerment. In a move that deepens market participation, the Authority has strategically reduced its stakes in entities such as OQ Exploration & Production (OQEP), Abraj Energy Services, ASYAD Shipping and OQ Gas Networks (OQGN). These divestments generated over RO 1.5 billion in total revenues and opened the door for private sector participation in key national assets. In parallel, OIA’s efforts helped attract over RO 3.3 billion in foreign investment in 2024, signalling growing international confidence in Oman’s economic trajectory and investment climate.

Central to OIA’s long-term strategy is the launch of the Future Fund Oman, a flagship investment vehicle with a capital of RO 2 billion over five years. The Fund is designed to stimulate local projects and channel capital into strategic growth sectors. Since its inception, it has received more than 300 project submissions, approving 104 projects valued at RO 1.316 billion. The Fund is becoming a key pillar of Oman’s diversification strategy, financing ventures that span manufacturing, logistics, technology and sustainable industries.

In tandem, the OIA’s Omani Angle Technology Localisation initiative is advancing Oman’s position in the knowledge economy. Among its key projects are Salience Labs’ smart energy management systems, BioGenomics Limited’s insulin manufacturing venture — marking a breakthrough for Oman’s biopharmaceutical ambitions — and Electric Hydrogen, which is developing affordable green hydrogen solutions. These projects demonstrate how OIA is aligning investment with innovation, technology transfer and industrial sustainability.

Expanding Oman’s global investment footprint has also been a defining feature of OIA’s strategy. The Authority now holds a presence in more than 50 countries, engaging in cross-border projects and partnerships that reinforce economic diplomacy. Through 10 strategic alliances established since 2021, OIA has been able to channel international capital towards both local and global ventures, enhancing Oman’s image as a trusted and forward-looking investment destination.

Looking ahead, OIA’s focus is increasingly shifting towards future technologies that will shape the next generation of economic growth. Its investment portfolio is now being diversified into artificial intelligence, clean energy, data centres, infrastructure development and cybersecurity — sectors that are rapidly transforming global markets. By anchoring its strategy on innovation and sustainability, OIA is not only driving returns but also positioning Oman as a leader in technology-driven and environmentally responsible development.

The overarching message behind OIA’s progress is clear: the Authority is turning Oman’s economic potential into tangible progress. Its record of achievements — from reducing national debt to catalysing foreign investments and fostering new industries — reflects a maturing investment landscape built on trust, resilience and long-term value creation. As OIA continues to expand its influence across borders and sectors, it stands as a model of how visionary governance and strategic investment can converge to power sustainable growth, in full alignment with the aspirations of Oman Vision 2040.

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