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Future Fund Oman Accelerates Economic Diversification

In a landmark move to bolster its economic landscape, Future Fund Oman has made a significant investment commitment of $1.2 billion in 2025. This initiative is a part of a broader $5.2 billion investment program aimed at driving economic diversification efforts in the Sultanate. By approving 141 projects this year alone, the fund is positioning itself as one of the fastest-growing national investment vehicles in the region, with all investments focused on projects within Oman, aligning with the country's Vision 2040.

Established under the Oman Investment Authority, Future Fund Oman aims to create a robust financial ecosystem that encourages participation from both domestic and international stakeholders. The fund's activities have successfully attracted investments from various foreign entities, including the United States, UAE, Saudi Arabia, Egypt, China, and India, indicating a growing international confidence in Oman's development plans, especially in sectors such as industrial manufacturing and clean energy.

One of the standout projects funded by Future Fund Oman is a $1.6 billion solar-grade polysilicon manufacturing facility, slated for completion in 2026 by United Solar. This project not only aims to enhance solar energy manufacturing capabilities in Oman but has also reported the creation of over 1,000 jobs and delivered more than $317 million in value within the local economy. Furthermore, the interest from international development finance institutions reflects the project's viability and strategic importance.

Another critical undertaking is the JA Solar initiative, which involves constructing a six-gigawatt solar cell manufacturing facility in the SOHAR Port and Freezone. With an investment of $442 million, this complex is nearing pivotal construction milestones and is expected to generate over 500 jobs, reinforcing Oman's status in the regional clean energy supply chain.

In the realm of small and medium enterprises (SMEs) and venture capital, Future Fund Oman continues to make strides under its dual mandate, having approved 132 SME and VC projects. Total commitments amount to $56.7 million, with $37.4 million already deployed. The strong application volume signals sustained interest in industrial modernization and clean energy projects, reflecting the ongoing innovation in Oman’s economic fabric.

Since its inception, the fund has assessed 828 proposals, ultimately approving projects valued at approximately $3.4 billion, which span across nine major strategic investments. The financial drive aims for a targeted return of 12% and a 40% equity cap for each investment, ensuring that both large-scale national projects and smaller, high-growth businesses receive necessary funding.

Future Fund Oman's efforts not only underscore its commitment to economic diversification but also highlight the importance of job creation as a key performance indicator. More than 1,400 jobs have been created since the fund's establishment, with thousands more anticipated as projects progress.

In conclusion, the Future Fund Oman is paving the way for a more diversified and resilient economy, strategically inclined towards harnessing the potential of renewable energy and advanced manufacturing, while ensuring that the local workforce is well-prepared for the future. With the corporate vision set towards 2040, Oman is gradually transforming its economic landscape into one defined by innovation, sustainability, and growth.