PIF seeks $5bn investments in Oman

Saudi Press Agency via Reuters

• Saudi wealth fund and Oman Investment Authority sign MoU
• Agreement will enable ‘new and promising investments’
• Expanded cooperation via PIF’s Saudi Omani Investment Company

Saudi Arabia’s sovereign wealth fund, PIF, has signed a memorandum of understanding with its Omani counterpart to seek out investments in Oman worth $5 billion.

The agreement aims to support the expansion of investment and cooperation between PIF and its portfolio companies with the Oman Investment Authority (OIA), said a PIF announcement on Thursday. 

The MoU builds on the recently established Saudi Omani Investment Company (SOIC), which is expected to invest up to $5 billion in the sultanate.

• PIF’s newest target is the $15bn global dates industry
• Saudi’s wealth fund enters $7.3bn camel dairy market
• Oman’s OQGN to use $1.2bn for gas network expansion

SOIC in February closed its first investment: a 20 percent stake in Oman’s Abraj Energy Service during an IPO of the company, which is a subsidiary of Oman’s integrated energy group OQ.

OIA is one of the Gulf’s smaller sovereign investment funds but plays a leading role in Oman’s efforts to diversify its economy and foster sustainable development. 

It was reported last November that OIA manages $41 billion in assets.

Most of its investments, 61.5 percent, are in Oman. North America accounts for 17 percent, Western Europe makes up 9.3 percent, and Asia Pacific is 4.7 percent. 

As of this year, PIF, one of the region’s largest funds, manages $700 billion in assets, according to governor Yasir Al-Rumayyan. It mainly invests in Saudi Arabia but holds assets globally across its various areas of business.