Oman Investment Authority lists tourism, food projects among key successes

A scorecard of the Oman Investment Authority’s (OIA) performance over the six months since it was restructured as the sole integrated sovereign wealth fund of the Sultanate of Oman features an array of achievements, including key decisions in progressing major tourism, fisheries and food security related projects.

However, the past six months are more notable for the Authority’s success in driving corporate governance, waste reduction and accountability in the large slate of state-owned enterprises (SOEs) operating under its umbrella.

In a post to mark the roughly 180-day milestone since it was revamped by Royal Decree on June 4, 2020, the Authority said: “Since the issuance of Royal Decree 61/2020 to establish OIA, we have embarked on our journey with accelerating momentum as a portrayal of our national duty and the mandate entrusted to us. In the last six months, we managed to move steadily towards (better) governance of SOEs.”

Set up last June, the restructured OIA has been given the mandate to, among other things, spearhead Oman’s economic recovery amid a slowdown wrought by low international oil prices and compounded by the coronavirus pandemic.

It owns and manages all of the government’s public assets (with the exception of Petroleum Development Oman) worth an estimated $18 billion.

In its first actions since its reorganisation, OIA announced the successful completion of the integration of three fisheries related affiliates into one flagship company.

Wholly-owned Fisheries Development Oman (FDO) is now the holding company of Blue Waters LLC, Al Wusta Fisheries Industries LLC, and Ocean Shrimp Aquaculture LLC, all three of which are positioned to play strategic roles in the development of Oman’s fisheries and aquaculture sectors.

In July, tourism and hospitality took centre-stage with the Authority announcing decisions to advance a number of prestigious government-backed hotels and resorts.

Those actions pertained to, among others, the implementation of the 5-star Alila Hino Resort in Mirbat, completion of Naseem Hotel in Al Jabal al Akhdhar, commencement of the Yiti Sustainable Tourism City, review of the Waterfront Project in Muttrah, and development of Bassa Beach in Musandam with a public park and 4-star property.

Also in July, the Authority announced the first of a series of steps to bring the 15-plus SOEs under its remit into line with the government’s corporate governance and fiscal sustainability philosophy.

To this end, it kicked off a wholesale restructuring of the boards of the companies and brought in as many as 79 professionals to support their oversight.

This was followed by a high-level meeting between the OIA leadership and chairpersons of the subsidiary companies focusing on, among other topics, annual KPIs for every organisation, curbs on executive remunerations and incentives, a fairer geographical distribution of investments across all governorates, empowerment of SMEs, and boosting foreign investment inflows.

Burgeoning efforts to strengthen local food production got a further shot in the arm in July when the Authority announced the setting up of the Agricultural Production and Marketing Co (APCO).

Part of its remit is to invest in modern agro farms and cold chain infrastructure, while also marketing the fresh produce of small farmers. Around 35 per cent of its output is earmarked for export.

In key actions taken during the third quarter of last year, the Authority restructured the entities that form part of the Oman Information and Communication Technology (OICT) group.

The Board of Directors of OQ, the integrated energy group of the Sultanate, was reconstituted as well.

Also in September, the Authority unveiled its Rawabet programme, designed to help OIA affiliated enterprises to align their policies with Oman Vision 2040.

Rounding off the six-month review, the Authority dissolved Oman Aviation Group earlier this year, and also announced the completion of the restructuring of wages and benefits of SOE employees.