OIA leads $500 million Central Asia fund

BUSINESS REPORTER
MUSCAT, OCT 24
Oman Investment Authority (OIA) has assembled a consortium of sovereign wealth funds and investment funds to establish a $500 million fund targeting Central Asia and the Caucasus, expanding its overseas investment partnerships and opening markets for Omani companies.
The Central Asia and Caucasus Investment Fund, targeting capital of about RO 192.2 million, is scheduled to be formally established at a signing ceremony in early November, OIA said.
The fund will seek capital from sovereign wealth funds, institutional investors and strategic investors in international markets. It will target logistics, renewable energy, mining, food and agriculture, healthcare and other sectors.
An Omani company led by a national team will manage the fund, which aims to build long-term investment partnerships and broaden the geographical reach of OIA and its portfolio companies.
Mulham bin Bashir al Jarf, OIA’s Deputy President for Investment, said the authority’s leadership of the consortium reflected international investors’ confidence in its ability to build strategic partnerships and attract capital to promising markets.
He said the fund would strengthen Oman’s economic and investment ties with countries across the region, creating opportunities for cooperation and joint investment.
OIA wants its overseas partnerships to generate benefits beyond their immediate investment markets by supporting cross-border business, expanding Oman’s participation in international investment partnerships and building lasting economic relationships, he added.
The initiative could provide opportunities for OIA companies to expand overseas. Asyad Group, Minerals Development Oman and OQ Group are exploring investments in logistics, mining and energy across Central Asian markets, according to the authority.
OIA said these companies could draw on their domestic expertise to enter new markets, develop partnerships and support the transfer of knowledge and investment to Oman.
The authority highlighted Kazakhstan, Uzbekistan, Azerbaijan, Kyrgyzstan and Tajikistan among the markets offering opportunities. It cited a regional population exceeding 86 million and foreign direct investment inflows that rose 16.6 per cent to about $4.64 billion, or RO 1.78 billion, by the end of 2025.
It also cited about 37.36 million tourist arrivals during 2025, pointing to potential demand for logistics, infrastructure and supporting services.
The region’s natural resources include oil, gas, gold, copper and uranium, alongside hydropower and other energy resources.
OIA cited International Monetary Fund estimates putting average economic growth in the region at about 7 per cent in 2025, compared with global growth of 3.5 per cent.
The fund forms part of the authority’s approach to using overseas investments to support Oman’s economy through commercial partnerships, access to new markets, knowledge transfer and the attraction of international investors.
OIA said Oman could also provide investment partners in Central Asia with access to Gulf and African markets.
The initiative builds on investment partnerships established with institutions in Uzbekistan, Azerbaijan and Kazakhstan.
A partnership with the Uzbekistan Fund for Reconstruction and Development dates back to 2009 through the Oman-Uzbekistan Investment Company.
OIA established another partnership in 2025 with Azerbaijan Investment Holding, a government-owned institution, to invest across sectors in Oman and Azerbaijan. A further partnership was established in 2026 with Kazakhstan’s sovereign wealth fund, Samruk-Kazyna.
OIA said its total assets exceeded RO 23 billion across three main portfolios.
About two-thirds of its capital is invested domestically through the National Development Portfolio and Oman Future Fund to support economic growth, diversification and investment in promising sectors.
The remaining third is invested overseas through the Generations Portfolio, which seeks long-term financial returns and risk diversification while supporting the transfer of technology and knowledge to Oman.