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Oman Investment Authority Reports $4.1 Billion Profit in 2024

The Oman Investment Authority (OIA), Oman’s sovereign wealth fund, has made headlines with its announcement of a remarkable net profit of $4.1 billion for the year 2024. This significant financial milestone not only highlights OIA's robust investment strategies but also reaffirms its position among the top ten sovereign funds globally, as recognized by Global SWF. Closing the year, the fund reported managing assets worth $53 billion, a figure that underlines its growing role in the national budget and fiscal landscape.

OIA operates under three main pillars: the National Development Fund (NDF), the Future Generations Fund (FGF), and the Future Fund of Oman (FFO). These diversified investment streams enable OIA to operate in more than 50 countries, with a notable 63% of its portfolio concentrated in Oman, complemented by 19.9% in North America and the rest spread across Europe, Asia, Africa, and Latin America. This strategic geographical distribution reduces risk and propels investments aligned with Vision Oman 2040, aimed at boosting the country’s economic diversification.

In 2024, OIA's National Development Fund (NDF) allocated $4.9 billion towards national projects, surpassing its initial target of $4.4 billion. An impressive 68% of this capital was directed towards the energy sector, which included additional funds for the Duqm refinery and new solar plants aimed at generating 500 MW of power. The remaining investments focused on logistics, tourism, mining, and telecommunications, ensuring a balanced growth across these pivotal sectors.

The Future Generations Fund (FGF) significantly broadened its international exposure by investing in 13 new funds, particularly in innovative sectors like artificial intelligence, healthcare, financial technology, and energy transition. Being one of the first investors in xAI, OIA is strategically positioned to derive value from global trends in innovation while evaluating their relevance to the Omani economy.

Launched in January 2024, the Future Fund of Oman (FFO) is designed to attract foreign investors and integrate leading local enterprises. With a total commitment of $5.2 billion, the fund injected $865 million into transformative projects, including the Sohar PolySilicon plant, touted to become the world’s largest outside of China, alongside partnerships with IDG Capital and ewpartners focusing on technology, renewable energy, electric vehicle supply chains, and agricultural technology.

Moreover, during the year, OIA’s portfolio companies successfully repaid $4.7 billion in debt, with a substantial $1.4 billion coming from state-owned energy firm OQ, thereby reducing sovereign guarantees to $4.7 billion – a near halving from 2023 levels. Notably, OIA divested six assets, surpassing anticipations, which enabled the attraction of fresh capital and increased local shareholdings. A highlight among these divestitures was a 25% IPO of OQ Exploration & Production, reflecting OIA’s ongoing efforts to empower the private sector and engage strategic financial partners.

In support of innovation and entrepreneurship, OIA remained committed to funding startups, accelerators, and specific acquisitions. In 2024, small and medium-sized enterprises (SMEs) constituted nearly 20% of OIA's supply chain expenditures, aided by resource segmentation and direct funding exceeding $28 million.

Furthermore, OIA reinforced its relationships with institutional investors and hosted a historic global sovereign funds meeting in Muscat, which earned commendation from the World Bank. These efforts facilitated improvements that restored Oman’s investment-grade rating, enhancing the country’s financial credibility.

In light of energy market volatility and geopolitical risks, OIA plans to amplify its investments in renewable energy, digital infrastructure, and critical minerals while scaling down hydrocarbon investments and divesting from non-essential assets. The strategy focuses on co-investments to accelerate knowledge transfer to Omani enterprises. With solid performance in 2024, improved access to capital markets, and a technology-driven project portfolio, OIA is poised to serve as a key stabilizer for Oman’s public finances.

For a comprehensive understanding of their strategies and achievements, the Annual Report for 2024 is available at Oman Investment Authority's website.