Oman and Spain launch second private equity fund

MUSCAT: Oman Investment Authority (OIA) and the Spanish state-owned Trading Company Cofides have announced the launch of the Spain Oman Private Equity Fund II (SOPEF II), a new fund that will invest in medium-sized companies in Oman and other target markets.

SOPEF II, the second such fund involving Omani and Spanish wealth funds, was unveiled on the sidelines of the annual meeting of the International Forum for Sovereign Wealth Funds, which It was held in the Spanish capital, Madrid, over the weekend.

In attendance were Abdulsalam bin Mohammed al Murshidi, Chairman of the Oman Investment Authority, and Omar bin Saeed al Kathiri, Ambassador of the Sultanate of Oman to the Kingdom of Spain.

SOPEF II is the successor to SOPEF I, which was established in 2018 and has achieved a net IRR of ~13.8 per cent so far. The new fund is expected to attract significant investment from Spanish companies, which are keen to expand into the Omani market and other emerging markets.

The fund aims to diversify investments in OIA’s Future Generations Fund, generate financial surplus, transfer knowledge and technology from Spanish companies to the Omani market, and enhance economic growth in both countries.

The launch of SOPEF II is a welcome development for both Oman and Spain. It will help to strengthen economic ties between the two countries and promote investment and job creation.

The key success indicator for SOPEF II is to achieve a net IRR of at least 15 per cent.

The fund’s managers are confident of achieving this target, given the strong track record of SOPEF I and the attractive investment opportunities in Oman and other target markets.

SOPEF II will benefit both Oman and Spain in a number of ways. For Oman, the benefits will accrue in the form of increased investment from Spanish companies, transfer of knowledge and technology from Spanish companies, job creation, and economic growth.

For Spain, the new fund will open up new markets for Spanish companies, and increase exports, among other benefits “At the Oman Investment Authority, we are working on managing many joint projects that stem from bilateral relations and strategic partnerships with various countries.

These steps come from the economic diplomatic efforts made by the Sultanate of Oman, which reflects its vision of establishing unified, mutually beneficial economic partnerships,” said Al Murshidi in a statement.

Jose Luis Curbelo, Chairman of the Board of Directors of Cofides, added: “We are pleased with the success achieved by the Omani-Spanish Fund since its establishment in 2018, which has become an essential tool for enhancing competitiveness between the two countries. We hope that the new fund will continue the same approach in helping Spanish companies grow.”