Skip to content Skip to Search
Skip navigation

Oman launches $5bn fund for major projects

The $5bn Oman investment fund will largely focus on major projects but will also aid SMEs and startups Oman Investment Authority
The $5bn Oman investment fund will largely focus on major projects but will also aid SMEs and startups
  • Worth $1 billion a year
  • 90% of fund for major projects
  • Green energy a focus

Oman Investment Authority plans to deploy about $1 billion per year over the next five years as part of a new fund launched on Wednesday that will primarily focus on large-scale projects in the sultanate.

The OIA officially announced the launch of the Future Fund Oman with $5.2 billion of capital, 90 percent of which will be invested in major projects located in Oman.

Small and medium-sized enterprises will receive 7 percent with the remaining 3 percent invested in startups.



Oman officials said projects coming under the investment fund will include tourism, manufacturing, green energy, fisheries, agriculture, ports and logistics, mining and information and communication technologies. 

“This focus is intended to rejuvenate these vital sectors and contribute significantly to Oman’s broader economic objectives,” said Abdulsalam Al Murshidi, OIA president, in a statement.

It also aims to empower the private sector and attract more foreign direct investment (FDI) to Oman, he added.

FDI in Oman rose 27 percent year on year to nearly $13 billion in the third quarter of 2023.

The UK was the leading source, injecting more than $6 billion, according to data from the National Centre for Statistics and Information, followed by the US and the UAE.

The oil and gas industry continued to receive the majority of investments, accounting for 53 percent of total FDI.

In his latest AGBI column, Matein Khalid, the chief investment officer in the private office of Abdulla Saeed Al Naboodah, said macro signs for Oman this year are far brighter after GDP growth fell to 1.3 percent in 2023.

He cited the easing of stringent financial conditions, an $83 a barrel Brent crude price that is at least $15 above Oman’s current budget breakeven price, a rebound in construction and retail, and an expansion of the oil and gas sector with a completion of major infrastructure projects and higher FDI capital inflows.

In January, Standard Chartered said Oman is on course to regain its investment-grade rating this year but analysts said challenges remain in reducing the economy’s dependence on hydrocarbons.

The 2024 budget projects oil and gas revenues at $19.5 billion, representing 68 percent of total revenues, with oil alone contributing over $15.5 billion.

Oman’s country ratings were raised to BB+ last year, one notch below investment grade.

It does not have the hydrocarbon reserves of its fellow GCC members to the north and is one of only two GCC states not to have an investment grade rating – the other is Bahrain. 

An investment grade rating means lower borrowing costs and puts the country on the radar of mainstream international investors

Latest articles

Shoppers choose vegetables in Istanbul; inflation means people are spending on essentials

Turkish retailers’ confidence wavers as inflation bites

Confidence is falling among Turkish retailers, according to a survey from the country’s statistics agency Turkstat. Shoppers have been scaling back on big-ticket purchases, spending instead on basic consumer goods as inflation piles pressure on household incomes. May’s business confidence report, released by Turkstat on June 24, showed sentiment in the retail sector at its […]

Water is handed out to pilgrims in Mecca. Hundreds of pilgrims without a Hajj permit died during extreme heat last week

Egypt shuts down 16 travel companies after Hajj tragedy

Egypt has withdrawn the operating licences of 16 travel companies for organising unlicensed Hajj trips to Saudi Arabia. A statement from the Egyptian government said the companies would be prosecuted and fined, with the funds used to compensate pilgrims’ families for their loss.  Hundreds of Egyptians were among 1,301 people who died of exposure to […]

A floating production unit in Israel's Karish gas field in the eastern Mediterranean. Carlyle is creating a new oil and gas company to manage the field

New Carlyle entity to manage East Med gas projects

Carlyle, the Nasdaq-listed private equity company, is creating a new oil and gas company to manage recently-acquired assets in the Mediterranean hydrocarbons market. The new as yet un-named entity will be led by former BP CEO Tony Hayward and will manage a portfolio of gas-weighted exploration and production assets in Italy, Egypt and Croatia, according […]

Spinneys plans to open another 12 stores in Saudi Arabia by 2028

Spinneys opens first Saudi supermarket in Riyadh

Spinneys has opened its first supermarket in Saudi Arabia and is planning a further 12 stores in the country by 2028. The UAE supermarket operator listed on the Dubai Financial Market last month and raised AED1.38 billion ($375.7 million) from its initial public offering, which was oversubscribed almost 64 times. The first Spinneys in Saudi […]