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

Future Fund Oman Commits $1.2 Billion

In a bold move towards economic diversification, Future Fund Oman has announced a remarkable commitment of $1.2 billion for the year 2025. This milestone coincides with the approval of 141 projects, reflecting the fund's proactive role in shaping the future of Oman’s economy, which is underpinned by the ambitious plans of Oman Vision 2040. The Oman Investment Authority established this fund with an overarching objective to channel a total of $5.2 billion over five years into impactful projects within the nation.

Enhanced Private-Sector Participation

The investment activity has seen increased participation from the private sector, with interests notably emerging from nations such as the United States, UAE, Saudi Arabia, Egypt, China, and India. By leveraging the investments of these global players, Future Fund Oman has successfully mobilized approximately $2.1 billion in additional private and foreign capital. This includes participation in significant projects that foster collaboration with international investors, banks, and financial funds.

Job Creation at the Forefront

A key performance indicator for the fund remains job creation. To date, the approved projects have already generated over 1,400 jobs while additional projects are ongoing, promising thousands more. The investments target five national priority sectors: energy transition, advanced materials, healthcare, logistics, and information and communications technology (ICT). This strategic focus has positioned the fund as a pivotal entity in steering the country's forthcoming economic growth trajectory.

Highlighted Major Developments

Among the flagship developments is a massive $1.6 billion solar-grade polysilicon manufacturing facility being constructed by United Solar, expected to complete in 2026. This project has already created over 1,000 jobs, contributing more than $317 million to the local economy, and is generating significant interest from global development finance institutions.

Another standout venture is JA Solar’s solar cell manufacturing complex in the SOHAR Port and Freezone, involving a $442 million investment. Set to employ over 500 workers, this facility marks a crucial step in expanding Oman's presence in regional clean energy supply chains.

Support for Small and Medium Enterprises (SMEs)

The Future Fund also prioritizes small and medium enterprises and venture capital. To date, 132 SME and venture capital projects have been approved, with $56.7 million allocated and $37.4 million already deployed through various specialized funding vehicles. The strong application influx for these undertakings reflects ongoing domestic and international interest in projects associated with modernization, technological innovation, and clean energy solutions.

Since its inception, the fund has evaluated 828 proposals, resulting in 141 projects cumulatively valued at around $3.4 billion, which cover a wide array of strategic investments.

Strategic Goals and Future Outlook

The Future Fund Oman aims for a targeted 12 percent return on investments, capping equity contribution to a maximum of 40 percent per project, ensuring a balanced approach towards financial sustainability in Omani initiatives. With the vision towards a diversified economy firmly in place, Future Fund Oman’s activities reinforce its significance in supporting national goals. As Oman continues to embrace change, Future Fund is poised to play a crucial role in its economic landscape.

For more information and media inquiries, you can contact the OIA Press Office at +968 92278104 or email at [email protected].