MUSCAT: Oman Chamber of Commerce and Industry (OCCI) hosted on Monday a forum to explore the potential of the Oman Future Fund — a landmark initiative of Oman Investment Authority (OIA) — as a driver of economic diversification and a reliable investment partner for businesses.
The forum delved into the Fund's objectives, operational mechanisms, and public-private partnership opportunities it offers. Additionally, it discussed the Fund's role in stimulating investments through financing for small and medium-sized enterprises (SMEs).
The forum emphasised the importance of integrating the Fund's resources with existing government financing initiatives to provide companies with a wider range of funding options. Various presenters highlighted the need for a balanced approach to project evaluation, considering both profitability and potential developmental returns.
Representatives from the Oman Future Fund provided detailed presentations on the Fund's goals and strategies. Rashid bin Sultan al Hashimi, First Investment Manager, explained how the Fund aims to strengthen the Omani economy by diversifying income streams. Moreover, he elaborated on the Fund's structure, highlighting its RO 2 billion ($ 5 billion) capital allocation over five years, with 90% dedicated to large-scale projects and 10% specifically targeted at SMEs and startups.
He mentioned partnerships with the Ministry of Finance and SME development agencies like Oman Talent and OOC Development and he emphasised the Fund's collaborative approach. On the other hand, the Fund seeks commercially viable projects with significant growth potential and offers a range of financing options, including equity share purchases and loans. Loan amounts vary from RO 5 million to RO 100 million for large projects, with a maximum of RO 5 million available for SMEs, he said.
Furthermore, the application process for accessing the Fund's resources is designed to be user-friendly, so applications can be submitted electronically through the Fund's website, and applicants can expect a response within 60 working days.
Al Hashimi concluded by inviting businesses from all sectors to participate in leveraging the Fund's resources to contribute to national economic diversification. He reiterated the importance of public-private cooperation for achieving the Fund's objectives.
Dr Yusuf bin Hamad al Balushi, another key figure associated with the Fund, offered a broader perspective. He placed the Fund within the context of Oman's economic development journey, highlighting past phases focused on infrastructure building (1970-1995) and financial sector development (1995-2020). He emphasized the current focus on diversification and job creation.
Listing challenges hindering economic diversification, such as dependence on oil revenue, limited non-oil investment, and a weak savings culture, Dr Al Balushi explained how the Oman Future Fund aims to address these issues by supporting a wider range of investment projects, attracting foreign capital, and empowering SMEs. He also stressed the need to transform Oman's economic model by prioritising production and exports while strengthening the private sector and ensuring adequate investment financing.
Dr Al Balushi emphasised the importance of collaboration among various entities for achieving economic transformation. He envisioned the government providing a conducive investment environment, the Fund financing projects, the private sector driving investment, commercial banks supporting SMEs, and the OCCI nurturing the private sector.
Qais bin Rashid al Tobi, General Supervisor of the Omani Promising Startups Programme, focused his presentation on SMEs and he acknowledged His Majesty Sultan Haitham bin Tarik’s support for these vital economic contributors and their crucial role in achieving Oman Vision 2040's goals.
Al Tobi detailed the Authority for SMEs' initiatives to support entrepreneurs. These include providing financial and advisory services, offering training programs, streamlining licensing procedures, and connecting entrepreneurs with relevant authorities. SMEs registered by the Authority total over 135,000 entities as of November 2023, with around 29,000 business cards having been issued, and around RO 24 million provided in financing to SMEs in 2023.
The launch of the Omani Promising Startups Programme and the establishment of a dedicated investment path for SMEs in cooperation with the Oman Future Fund further demonstrate the government's commitment to fostering this sector. A rise in demand for SME financing and development services is anticipated, he said, adding that their contribution to GDP is projected to increase from 24% to 31% by 2030. He concluded by calling for continued collaboration among all stakeholders to empower SMEs and realise the aspirations of Oman Vision 2040.
The fourth Ramadhan Forum of the Chamber, set to take place on March 26, will focus on criminal responsibility in the Commercial Companies Law and litigation procedures in light of the progress of information technology. Presenters will included Judge Saif bin Abdullah al Hosani from the Supreme Judicial Council and Khalfan bin Saeed al Mawali, Chief Prosecutor. The forum will be moderated by lawyer Maymouna al Sulaymaniyah, member of the Omani Human Rights Committee.
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