Oman Investment Authority Launches $5.2 Billion Fund
The Future Fund Oman is designed to support economic diversification initiatives.
Oman Investment Authority (OIA) has launched the Future Fund Oman, a $5.2 billion (OMR 2 billion) initiative aimed at stimulating investments in the private sector and fostering growth in small and medium-sized enterprises (SMEs).[1]
The fund will be used over 5 years, with an expected $1 billion (OMR 400 million) to be spent annually. 90% of the fund's capital will go toward new or existing projects, while 7% will be allocated to SMEs and 3% to startups.
The Future Fund Oman is designed to support economic diversification initiatives while creating a favorable environment for foreign investment. The fund will invest in 8 sectors, including tourism, industry and production, green energy, information and communications technology, ports and logistics services, mining, fisheries, and agriculture. The fund aims to stimulate the national economy as well as to provide local and international investors that are looking to expand into Oman, according to President of the Oman Investment Authority (OIA) Abdulsalam Al Murshidi. Al Murshidi said that the fund will serve as a third portfolio beside the country's two current investment portfolios, National Development and Generations.
The fund will support all initiatives, including those carried out by government companies, private sector companies, or private foreign initiatives, acting as both a capital partner and a lender. Future Fund Oman has the capacity to finance projects up to $260 million (OMR 100 million), for a maximum of 40% of the capital in partnerships with the private sector.
The fund will be governed by the quality standards of the Oman Investment Authority and will have an investment committee with members from the OIA as well as the Ministry of Finance and other independent bodies.
Investments in SMEs and startups will be managed through the Omani National Investment Development Company (Tanmia), ITCHA Group, Omantel, and Cyfr Capital.
The fund is accepting applications through its website www.futurefund.om