MUSCAT - Businesses operating across Oman Investment Authority (OIA), the integrated sovereign wealth fund of the Sultanate of Oman, have pledged to invest an estimated $17bln (RO 6.7bln) in a wide portfolio of growth projects over the next five years (2022-2026). Economic returns anticipated from these investments are projected at RO 2.6 billion during this period.
The revelations came during a briefing by OIA and its subsidiaries of their recent performance, as well as their growth strategies over the next five years. The briefing was held in the presence of business leaders and CEOs.
In opening remarks, Abdulsalam bin Mohammed al Murshidi (pictured), President of the Oman Investment Authority, unveiled the new structure of the Authority with its assets split across two new pillars: National Development Portfolio and the Future Generations Fund.
According to Hisham bin Ahmed al Shidi, Director General of Economic Diversification Investments, the Authority seeks to achieve the priorities of Oman’s Vision 2040, especially with regard to economic diversification, empowering the private sector, attracting foreign investments and financial sustainability.
He added that the business plans of the affiliated companies of the Authority are based on strategic principles, most notably the development of the governorates, creating business opportunities for Omani youth, as well as business opportunities for small and medium enterprises and local companies, as well as achieving financial savings.
A presentation by the Authority affixed eight priorities for the National Development Portfolio.
First – driving financial sustainability by enhancing profitability and increasing the contributions of the tourism, agriculture, fisheries and technology sectors in it, and reducing the total debt during the next five years by 32 per cent.
Second – achieving growth in the selected sectors through a total capital expenditure between 2022 and 2026 amounting to RO 6.7 billion with 30 per cent earmarked for new growth projects.
Third – Contributing to the growth of the gross domestic product.
Fourth – Driving investment inflows through the private sectors, notably by exiting from certain existing investments and privatising others – measures expected to bring in an estimated RO 1 billion in 2022.
Fifth – Realising returns from new investments to the tune of RO 2.6 billion over the 2022-2026 period.
Sixth – Contributing to the in-country value added through the launch of the In-Country Value Programme (Qimam) and determining the total expenditure that serves local businesses.
Seventh – Achieving synergy and integration between companies across more than 100 heads related to the supply chain, digital transformation and human resources.
Eighth – Implementing governance and transparency through the introduction of the corporate governance charter associated with the Oman Investment Authority, issuing more than 10 policies and guidelines, and is currently working on preparing a set of policies such as treasury, business plans, environmental and social governance, and performance disclosure.
Eleven subsidiaries of the Authority reviewed their performance over the past years, and their plans during the current year 2022, in addition to their future projects until 2026.
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