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Oman Investment Authority’s assets value hits RO 19 billion

Oman Investment Authority (OIA) announced that its assets have grown by over RO one billion, reaching a total of RO 19.240 billion. Additionally, OIA achieved profits that surpassed RO 1.7 billion. Additionally, OIA achieved 9.95% in investment returns compared to 8.8% last year.

All the while, it 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 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. This is the third annual report report of OIA since its establishment on June 4, 2020, under Royal Decree No. 61/2020.

In his foreword, Sultan al Habsi, Minister of Finance and Chairman of OIA’s Board of Directors, confirmed that OIA and its companies have played a direct role in the government’s reform programs and initiatives aimed at mitigating the negative effects of economic fluctuations.

Abdulsalam al Murshidi, President of OIA, expressed that the high praise received from His Majesty Sultan Haitham bin Tarik serves as a starting point and motivation to continue growing and achieving success. These milestones were achieved despite the global economic fluctuations and escalating geopolitical tensions, tightening monetary policies by major central banks, banking sector turmoil in the US and Europe, the US debt ceiling controversy, the Ukrainian-Russian war, and the impacts of the Gaza events.

He further went on to state that the accomplishments of 2023 are attributed to a talented national workforce, of which OIA and its companies are proud. Their experience, ambition, and confidence enabled them to work in harmony with the demands of their work at the Sovereign Wealth Fund of the Sultanate of Oman and meet the expectations set for achieving national goals.

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, with a total investment value of over RO 4 billion.

Aligning with the government’s economic diplomacy trends to strengthen strategic partnerships with friendly countries, OIA expanded its strategic joint ventures with the establishment of the second Spain Oman Private Equity Fund, following the success of the first fund. It also agreed with India to launch the third joint fund, building on the success of the previous two funds in generating profitable returns from their investments. Furthermore, OIA supported the Ministry of Foreign Affairs efforts to enhance international relations by sending investment attachés to the USA, Germany, the UK, and KSA.

Continuing the divestment plan set mid-2022 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), notably the two companies Abraj Energy Services and OQ Gas Networks. This had a positive impact on the trading volume at MSX and attracted foreign investments.

In order to fulfill the national agenda of OIA and its companies and align with the Royal Directives on employment and provision of job and training opportunities for Omanis, OIA has achieved remarkable success. It surpassed its target of creating 800 new jobs by successfully generating 1,307 job opportunities for Omanis. Additionally, OIA initiated several training and qualification programs, including the highly esteemed external scholarship program for exceptional students known as Oman Scholars, which has received Royal blessings.

Moreover, 2023 witnessed the launch of OIA’s Academy for Training and Development and the unified Jadarah recruitment platform for employment and training opportunities, which utilizes artificial intelligence. OIA and its companies continued their steadfast efforts to maximize In-country Value (ICV) and enhance the role of SMEs. The total spent on SMEs amounted to RO 202.6 million, with RO 106.7 million going to holders of the Entrepreneurship Card. This represented a significant contribution of 16.8% of the total supply chain expenditures. Furthermore, OIA Companies spent more than RO 42 million on services and products in the mandatory list during 2023.