Oman has launched a $5 billion investment fund, primarily focused on large-scale projects, but also designed to support SMEs and startups.
- Annual Allocation: $1 billion per year
- Investment Breakdown: 90% for major projects, 7% for SMEs, and 3% for startups
- Key Focus: Green energy initiatives
The Oman Investment Authority (OIA) will deploy approximately $1 billion annually over the next five years through the newly established Future Fund Oman, which has a total capital of $5.2 billion. Of this, 90% will be directed toward significant projects within Oman, while small and medium-sized enterprises (SMEs) will receive 7%, and startups will get the remaining 3%.
According to Oman officials, the fund will target key sectors such as tourism, manufacturing, green energy, fisheries, agriculture, ports and logistics, mining, and information and communication technologies. OIA President Abdulsalam Al Murshidi stated that the fund aims to revitalize these critical sectors and contribute substantially to Oman’s broader economic goals. Additionally, it seeks to empower the private sector and attract more foreign direct investment (FDI) to Oman.
FDI in Oman saw a 27% increase year on year, reaching nearly $13 billion in the third quarter of 2023. The UK led with over $6 billion in investments, followed by the US and UAE. The oil and gas industry received the majority of these investments, accounting for 53% of the total FDI.
Matein Khalid, Chief Investment Officer in the private office of Abdulla Saeed Al Naboodah, highlighted that Oman’s macroeconomic outlook is significantly brighter this year, following a GDP growth dip to 1.3% in 2023. Key factors include eased financial conditions, a Brent crude price of $83 per barrel—$15 above Oman’s budget breakeven price—a rebound in construction and retail, and increased activity in the oil and gas sector. The 2024 budget forecasts oil and gas revenues at $19.5 billion, making up 68% of total revenues, with oil alone contributing over $15.5 billion.
