Oman Investment Authority (OIA) has launched the 'Future Fund Oman' with a capital of $5.2 billion to be deployed over the next five years at the rate of $1 billion annually.

The fund will allocate 90% of its capital to investing directly in commercially and economically viable new or existing large-scale projects located in Oman.

It will also allocate 7% of its capital towards funding support small and medium-sized enterprises (SMEs), and the remaining 3% is set to be invested in startups, the Oman Investment Authority said in a statement on Wednesday.

The fund will act a catalyst for economic diversification, with focus on empowering the private sector, attracting FDI, empowering SMEs, and fostering venture capital, it said.

According to an S&P report last year, Oman's economy depends on the oil sector, which accounts for about 30% of GDP, 60% of goods exports, and 70% of government fiscal receipts. The agency expects higher hydrocarbon production in 2024 and 2025 to support the economy.

OIA, which was set up in 2020 to better manage the government's financial assets and public enterprises, has plans to disinvest part of its stakes in several companies. It manages its assets through Future Generations Fund (FGF), and the National Development Fund (NDF).  

(Writing by Brinda Darasha; editing by Seban Scaria)