State companies post first-ever profits under OIA revamp

Oman Investment Authority's (OIA) restructuring programme has significantly improved the financial performance of a string of state-owned companies, with OQ Group cutting its total debt by 48 per cent and OQ Refineries and Petrochemicals posting its first profit in more than two decades, according to the authority's latest quarterly bulletin.
The details were disclosed in Issue 17 of Enjaz & Eejaz, OIA's quarterly publication, in an interview with Thuraiya bint Ahmed al Balushi, Acting Chief Investment Officer for Economic Diversification Investments.
Since the ownership of government companies was transferred to OIA in 2020, the authority has pursued a far-reaching transformation of its portfolio. Al Balushi said the programme was a direct response to operational and financial challenges that had affected certain companies, alongside a clear need to sharpen performance, strengthen governance and put finances on a more sustainable footing.
'Our success in steering companies to profitability is a true testament to our core role,' she said.
Across the portfolio, several companies have posted profits for the first time since their establishment, while debt levels have come down and credit ratings improved, according to the interview. Al Balushi added that the collective progress of OIA companies has played a part in lifting Oman's sovereign credit rating.
OQ Group underwent a comprehensive restructuring that strengthened synergies, reorganised its capital base and reduced debt, with the group going on to secure investment-grade credit ratings from both Fitch and S&P. The return to profit at OQ Refineries and Petrochemicals — its first in over two decades — was attributed to a strategic transformation focused on operational efficiency, asset reliability and the restructuring of financial obligations.
In the food sector, the merger of Oman Food Investment Holding Company (Nitaj) with Fisheries Development Oman created synergies that lifted revenues and improved performance across several of their companies, while a thorough overhaul of Mazoon Dairy's operations and distribution channels brought the company to financial break-even and, ultimately, to its first operating profit.
Asyad Drydock built a more diversified and resilient business by pushing into higher-value services, delivering record operational results, while the Oman Convention and Exhibition Centre — once heavily reliant on government support — recorded its first-ever operating profits by broadening its income streams and drawing in more regional and international events.
Al Balushi said OIA will continue to focus on making its companies more competitive, deepening synergies across the portfolio and building partnerships that serve Oman Vision 2040. 'The goal, ultimately, is real and lasting benefit for the country and its people,' she said.
The bulletin follows OIA's announcement of record 2025 results, with profits of RO 2.9 billion and a return on investment of 14.6 per cent, bringing its five-year average return to 10.4 per cent.