Oman Investment Authority launches $5.2bn fund to increase financing for SMEs

Oman’s sovereign wealth fund Oman Investment Authority has launched a 2 billion Omani rial ($5.2 billion) fund to encourage investments in the private sector and in small and medium-size enterprises.

The Future Fund Oman, first announced in May last year, aims to strengthen the economy by supporting diversification and attracting more foreign investment, Oman’s Ministry of Economy said.

It is expected to focus on sectors such as tourism, manufacturing, green energy, maritime resources and technology.

The fund is a catalyst for the growth of the national economy and a reliable partner for local and international investors wishing to expand the scope of their projects in Oman’s economy, OIA president Abdulsalam Al Murshidi said, according to the Oman News Agency.

The Gulf nation, which is heavily dependent on hydrocarbons, launched a three-year fiscal stability programme in October 2022 to add momentum to its economic recovery from the pandemic-driven slowdown and support the development of the country’s financial sector.

Oman’s economy is estimated to have grown by 1.3 per cent in 2023, down from 4.3 per cent in 2022, due to Opec+ oil production cuts, the International Monetary Fund said.

The country posted a budget surplus of 931 million rials for the financial year 2023, according to preliminary data, after a more-than-anticipated rise in public revenue on higher oil and gas production and prices.

Last month, Fitch Ratings said that Oman’s aim to expand domestic green hydrogen production could support its gross domestic product, fiscal revenue and the balance of payments over the long term amid the global energy transition.

Oman aims to produce at least a million tonnes of renewable hydrogen a year by 2030 before increasing the capacity to 3.75 million tonnes by 2040 and 8.5 million tonnes by 2050.

One of the economic pillars of Oman Vision 2040 is to increase revenue from tourism. In 2022,

Oman welcomed about 2.9 million tourists – up 348 per cent compared with 2021.

The country aims to earn more than 9 billion rials a year from tourism by 2040.

Last year, Oman unveiled plans for new adventure tourism projects. The country, known for its diverse landscape, will benefit from a single unified tourist visa for the GCC region, which is expected to be introduced this year or in 2025.