Oman Investment Authority Reports Robust $4.1 Billion Profit for 2024, In the Global Top 10 Sovereign Funds

Oman Investment Authority Reports $4.1 Billion Profit for 2024



The Oman Investment Authority (OIA), the sovereign wealth fund of the Sultanate of Oman, has announced impressive financial results for the year 2024, closing the year with significant growth. OIA managed to amass an astounding $53 billion in total assets and a net profit of $4.12 billion. This substantial profit allowed for the transfer of $2.1 billion to the national budget, underscoring OIA's expanding role in the nation’s financial landscape.

OIA has been recognized as one of the top sovereign wealth funds globally by Global SWF, largely due to its remarkable annualized returns over the past five years. This recognition highlights OIA's ability to leverage Oman's potential through global diversified investments aimed at promising sectors for growth, as outlined in the country's Vision 2040 initiative.

Strategic Investments Across Multiple Sectors



OIA's investment strategy is multi-faceted, encompassing three primary verticals: the National Development Fund (NDF), the Future Generations Fund (FGF), and the Future Fund Oman (FFO). The portfolio spans over 50 countries, with a notable 63% of investments in domestic companies. The remaining investments include 19.9% in North America, with further allocations in Europe, Asia, Africa, and Latin America.

In 2024, the NDF played a crucial role in facilitating local projects, contributing $4.9 billion, surpassing its target of $4.4 billion. The energy sector, a significant focus, accounted for 68% of commitments, including funds for the Duqm refinery and the establishment of solar power plants with a capacity of 500 MW. Additional investments were funneled into logistics, tourism, mining, and telecommunications, enhancing infrastructure such as the Asyad container terminal and copper mines.

The FGF has widened its international influence by investing in 13 new funds related to sectors including AI, healthcare, fintech, and energy transition. As an early investor in xAI, the OIA stands ready to capitalize on global innovation trends, assessing their relevance to Oman's economy.

Fostering Local Development and Partnership



Launched in January 2024, the Future Fund Oman aims to attract foreign investment while empowering local market leaders. With a total of $5.2 billion, the FFO has allocated $865 million towards projects such as a polysilicon factory in Sohar—the largest of its kind outside China—and collaborative funds with IDG Capital and ewpartners focusing on ICT, renewable energy, electric vehicle supply chains, and agritech.

The portfolio companies have managed to repay debts amounting to $4.7 billion, including $1.4 billion through early repayments by the state-owned energy firm OQ. Total sovereign guarantees decreased to $4.7 billion, almost halving from the year 2023. The OIA successfully divested one more asset than planned, releasing fresh capital while boosting local equity participation. A noteworthy achievement was the successful IPO of OQ Exploration & Production, marking a 25% stake.

OIA's commitment to innovation and entrepreneurship remains strong, promoting startup initiatives, acceleration programs, and targeted procurement strategies. In 2024, small and medium-sized enterprises accounted for nearly 20% of OIA's supply chain expenditures, backed by dedicated funding exceeding $28 million.

Strengthening Relationships and Future Outlook



In its commitment to bolster relationships with institutional investors, OIA hosted the world’s most extensive sovereign wealth fund meeting in Muscat. This enhanced engagement, alongside improved transparency, earned recognition from the World Bank and supported the upgrade of Oman’s rating to investment grade.

Faced with energy price volatility and geopolitical uncertainties, OIA plans to accelerate investments in renewable energy, digital infrastructure, and critical minerals while gradually decreasing its dependence on fossil fuels. There are strategic divestments planned for non-core assets as well. Furthermore, OIA aims to expand co-investments, thereby facilitating knowledge transfer to Omani companies.

With solid financial results for 2024, improved access to capital markets, and a promising technology-driven project pipeline, OIA is well positioned as a stabilizer for Oman’s public finances moving forward.

For more detailed information, the annual report for 2024 is available at www.oia.gov.om.

Oman Investment Authority

Topics Financial Services & Investing)

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