#Future Fund Oman #economic diversification #Oman #Muscat #Investment Authority

Future Fund Oman Sees Surge in Investment Commitments

The Future Fund Oman has recently announced significant achievements for the year 2025, marking a remarkable increase in investment activities as Oman pushes towards economic diversification. With a reported approval of 141 projects within the year, total commitments have soared to $1.2 billion. This surge aligns with a broader investment program valued at $5.2 billion, designed for a five-year period aimed at diversifying Oman’s economy.

Established by the Oman Investment Authority, this fund has quickly become one of the fastest-growing national investment vehicles in the region. All capital raised is allocated to projects within Oman, in direct alignment with the Oman Vision 2040 priorities.

Mobilizing Private Sector Participation

This increase in investment activity has led to heightened involvement from the private sector, not just locally but across various international markets. Notable foreign investments have come from entities in the United States, United Arab Emirates, Saudi Arabia, Egypt, China, and India. To date, Future Fund Oman has successfully mobilized approximately $2.1 billion from private and foreign capital, facilitating the implementation of eight major projects in collaboration with global investors, banks, and fund managers.

The growing leverage ratio indicates a rising global confidence in Oman’s aspirations within the sectors of industry, manufacturing, and clean energy. A key indicator of success remains job creation, with approved projects generating over 1,400 jobs and thousands more in progress. Investments are concentrated across five national priority areas: renewable energy, advanced materials, healthcare, logistics, and information and communication technology.

Highlighted Projects

Among the flagship projects within the Future Fund is a $1.6 billion polysilicon production facility by United Solar, scheduled for completion in 2026. This initiative alone has created over 1,000 jobs and generated domestic value exceeding $317 million, attracting interest from international development financing institutions.

Another critical project is the JA Solar’s solar cell production complex at the SOHAR Port and Freezone, featuring an investment of $442 million that is on track to meet significant construction milestones. Upon completion, this facility is expected to create more than 500 jobs, enhancing Oman’s position in the clean energy supply chains.

Additionally, through the fund’s Small and Medium Enterprises (SME) and Venture Capital mandates, momentum continues to gather. Since its initiation, 132 SME and VC projects have been approved, with $56.7 million pledged and $37.4 million invested across eight specialized vehicles catering to various stages of business growth.

The ongoing high demand for funding reflects persistent national and international interest in initiatives focused on modernizing industries, fostering technological innovations, and promoting clean energy solutions.

Comprehensive Investment Strategy

Since its inception, the Future Fund Oman has evaluated 828 proposals and given the green light to 141 projects worth around $3.4 billion, encompassing nine major strategic investments along with 132 SME and venture capital initiatives. The fund operates on a dual mandate that directs capital to both large-scale national projects and smaller, high-growth companies, with a return target of 12% and an equity cap of 40% per investment.

In conclusion, the Future Fund Oman's record activities in 2025 not only signify capital commitments but also illustrate the momentum towards achieving diversified economic growth for Oman while fostering job creation and enhancing private sector participation in the nation's development. As Oman continues this trajectory, the Future Fund remains pivotal in reshaping its economic landscape towards a sustainable future.