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Oman Investment Authority Reports $4.1 Billion Profit for 2024

The Oman Investment Authority (OIA), the sovereign fund of the Sultanate of Oman, has announced remarkable financial outcomes for the year 2024. As reported, the OIA concluded the year with $53 billion in assets under management and a net profit of $4.12 billion. This significant profit enabled the Authority to transfer $2.1 billion to the state budget, thus fortifying its increasing fiscal role within the Oman economy. Moreover, the OIA has been recognized as one of the top ten sovereign funds globally by Global SWF, based on its five-year annualized returns, showcasing its effective management and diversified investment strategies.

Investment Strategies and Sectors

The OIA has adopted a multi-faceted investment approach, focusing on three main verticals: the National Development Fund (NDF), the Future Generations Fund (FGF), and the Future Fund Oman (FFO). Notably, 63% of its portfolio is nationally focused, with significant allocations in North America, as well as emerging markets in Europe, Asia, Africa, and Latin America. This strategy aims to mitigate risks while simultaneously advancing priority sectors outlined in Oman’s Vision 2040.

In 2024, the National Development Fund invested $4.9 billion, exceeding its target of $4.4 billion to fast-track national projects. A substantial 68% of the investments were directed towards the energy sector, which included additional funding for the Duqm refinery and investments in 500 MW solar power plants. Other sectors receiving support included logistics, tourism, mining, and telecommunications, with specific investments directed towards the Asyad container terminal and the reopening of copper mines.

Expanding Global Portfolio

The Future Generations Fund was proactive in expanding its global exposure by acquiring stakes in 13 new funds, covering sectors such as artificial intelligence, health, fintech, and energy transition. As an early-stage investor in xAI, the OIA aims to capitalize on worldwide innovation initiatives while assessing their applicability to Oman’s economy.

Launched in January 2024, the $5.2 billion investment fund targets attracting foreign investors and fostering local champions. So far, it has committed $865 million to key projects, including a poly-silicon plant in Sohar—a project expected to become the largest outside China—and partnered with IDG Capital and ewpartners to target technology, renewable energy, electric vehicle supply chains, and agritech sectors.

Financial Management and Local Engagement

In terms of debt management, the OIA’s portfolio companies have repaid $4.7 billion in debts, with $1.4 billion repaid early by the public energy group OQ. Additionally, sovereign guarantees have further reduced to $4.7 billion, nearly halving their 2023 levels. The OIA has also efficiently increased transparency by divesting six assets, exceeding expectations, which has raised fresh capital and broadened local participation. The most notable divestiture was the public listing of 25% of OQ's exploration and production segment, emphasizing the OIA’s commitment to enhancing the private sector and attracting strategic financial partners.

To foster innovation and entrepreneurship, the OIA has bolstered startup funding, accelerators, and targeted public procurement opportunities. Notably, in 2024, small and medium-sized enterprises accounted for nearly 20% of the OIA’s supply chain spending, underpinned by a robust system for local sourcing and a direct financing initiative exceeding $28 million.

The OIA has cultivated relationships with institutional investors, hosting the largest global sovereign fund gathering in Muscat, an initiative recognized by the World Bank. The aim is to enhance disclosures, ultimately restoring Oman’s standing as an attractive investment destination.

Future Outlook

In light of ongoing energy volatility and geopolitical risks, the OIA envisages a strategic pivot towards renewable energy, digital infrastructure, and essential minerals, while diminishing its reliance on hydrocarbons and divesting non-essential assets. Strategies are also in place to foster co-investment ventures to facilitate knowledge transfer within Omani enterprises. With positive financial results in 2024, a broadened access to capital markets, and an array of tech-focused projects, the OIA is positioning itself as a key stabilizer for public finances in the Sultanate of Oman.

For more detailed insights, the 2024 Annual Report is available at www.oia.gov.om.