BUSINESS REPORTER
MUSCAT, JUNE 6
Global SWF has confirmed the success of the Oman Investment Authority (OIA) in enhancing the profitability of state-owned enterprises, recycling state investment assets, and attracting foreign capital and expertise into sectors aligned with Oman Vision 2040.
According to Global SWF, OIA’s 2025 performance results demonstrate the effectiveness of the sovereign governance structure adopted by the Sultanate of Oman following 2020, under which government-owned companies were transferred to OIA’s portfolio. Through this framework, OIA manages these entities on behalf of the State while actively improving their financial performance.
Global SWF noted that although OIA may not match the size of some of the world’s largest sovereign wealth funds, it has developed a distinctive model. OIA increasingly serves as the institution through which Oman links state-owned enterprise reform, reinvestment, selected foreign partnerships, strategic divestments, domestic investment promotion, job creation, and supplier development.
Global SWF illustrated that since 2020, OIA has overseen government-owned companies on behalf of the state, enhanced their profitability, and executed selective divestments. Through public offerings, direct sales, and strategic partnerships, OIA has attracted foreign investment, strengthened operational discipline within state assets, and redirected proceeds toward higher-value strategic sectors and opportunities with stronger expected returns.
Global SWF highlighted several examples of OIA’s success in transforming the performance of its portfolio companies to profitability. OQ Group for instance had previously faced operational challenges and financial pressures associated with major capital projects and rising debt levels, creating the need for a comprehensive restructuring program. Following its transfer under OIA in 2020, a strategic transformation program was implemented focusing on corporate strategy modernization, enhanced integration across business units, organizational and capital restructuring and debt reduction. Capital recycling through divestments and public offerings on the Muscat Stock Exchange these efforts reduced total debt by 48%, from RO 5 billion to RO 2.7 billion, released RO 2.2 billion in government guarantees, and improved the net debt to profit ratio from 8.6x to 0.6x by 2025. The Group also secured investment-grade credit ratings from Fitch and Standard & Poor’s.
After more than two decades of operational challenges that includes operational efficiency issues, performance volatility, and the effects of global fluctuations in refining and petrochemical markets, in addition to a high level of financial liabilities, OQ Refineries and Petrochemicals (OQRPI) recorded its first-ever profits. Since joining OIA’s portfolio, the company has pursued a transformation strategy through 2030 focused on operational efficiency, asset reliability, cost reduction, and financial restructuring. Between 2021 and 2025, OQRPI generated cumulative profits of RO 474 million and increased crude processing capacity from 80 million barrels to 93 million barrels annually. The company has also begun preparations to repay RO 2.7 billion in outstanding debt during the next phase.
Oman Food Investment Holding Company (Nitaj) and Fisheries Development Oman faced challenges related to asset expansion and operational complexity. OIA led a comprehensive restructuring process that included; merging the companies into a unified entity, reconstituting executive management and boards, restructuring debt, enhancing risk management systems, establishing strategic partnerships and operational agreements that aims to complete and operate a number of projects and establish technical partnerships and implement calculated divestments. As a result, fisheries portfolio revenues increased by more than 93%, while Nitaj assets recorded revenue growth exceeding 23%. Portfolio companies, including Mazoon Dairy and Al Wusta Fisheries Industries, achieved performance improvements exceeding 100%, demonstrating the success of integration and restructuring initiatives.
Mazoon Dairy was among the companies that experienced a significant turnaround under OIA’s stewardship, having faced operational and financial challenges in previous years that were further intensified by supply chain disruptions caused by the COVID-19 pandemic that affected operational efficiency, revenue generation, and liquidity levels. OIA conducted a comprehensive review of the company’s operations and appointed new management to implement a transformation program. The company achieved financial breakeven in 2024 and generated operating profits of RO 3 million. Revenues increased by 15% between 2024 and 2025, supported by sales growth and expanded exports.
Another notable example is Asyad Drydock, which faced significant challenges from its inception due to intense competition in the ship repair and maritime services market, coupled with its substantial dependence on the oil and gas tanker sector. These challenges were further intensified by the global disruption to maritime activity caused by the COVID-19 pandemic. In response, efforts were undertaken to establish a more sustainable and competitive business model, OIA helped transform Asyad Drydock by improving operational efficiency, upgrading infrastructure, adopting advanced technologies, and diversifying revenue streams. Between 2021 and 2025; net profit grew at a compound annual growth rate (CAGR) of 65.9%, revenues increased at a CAGR of 16.2%, the company completed 258 projects in 2025, an 11% increase year-on-year and operational productivity improved by 22%.
In the events and business tourism sector, the Oman Convention and Exhibition Centre (OCEC) emerged as one of the success stories in enhancing operational and financial sustainability despite the challenges faced by the industry in recent years. Since its establishment, the Centre has operated in an environment characterized by the cyclical nature of the events and business tourism sector, while relying to some extent during its early stages on government support to meet certain operational requirements. The challenges intensified as geopolitical and regional factors affected the flow of international conferences and events, negatively impacting event volumes and operating revenues. As part of efforts to establish a more sustainable business model, the Centre focused on diversifying revenue streams, increasing reliance on operating income, attracting regional and international events, and enhancing its service offerings. These efforts resulted in the Centre achieving its first-ever operating profit in 2024 since its establishment in 2016, while simultaneously reducing its dependence on government support. Annual income increased from approximately RO 3.4 million in 2022 to more than RO 7.6 million in 2025.
Global SWF stated that OIA has become an integral component of Oman’s sustainable economic and political stability in a region characterized by significant geopolitical uncertainty. The Authority helped the Omani economy remain resilient and maintain a strong position, while preserving comfortable fiscal buffers. This is particularly evident in OIA’s 2025 results, which reaffirm the success of the sovereign governance framework adopted by the Sultanate of Oman after 2020. OIA announced a record profits of RO 2.9 billion (USD 7.5 billion), asset growth to nearly RO 23 billion (USD 60 billion), annual return of 14.6% and five-year compound annual return of 10.39% these results positioned OIA as the third-best-performing sovereign wealth fund globally.
Strong focus on domestic economy
Global SWF noted that approximately two-thirds of OIA’s assets are invested within Oman, while North America accounts for 19%, Europe 9%, Asia-Pacific 4% and other markets 7%. The Authority’s investment profits serve three simultaneous objectives; supporting the State budget, strengthening fiscal reserves and promoting economic diversification through reinvestment in domestic projects.
According to Global SWF, OIA has transformed its approach to international partnerships. Rather than focusing solely on financial returns and increasing assets, partnerships are now designed to attract expertise, technology, and capabilities into priority sectors within Oman, including; food security, healthcare, logistics, energy, mining, manufacturing, and Information and communications technology (ICT) as well as ensure more resilient legal form. This approach begins with establishing institutional alignment first, while allowing flexibility to determine the most appropriate capital structure at a later stage. In other words, these strategic partnerships with countries are not managed solely as a portfolio investment strategy; rather, they occupy a middle ground between sovereign investment and economic diplomacy.
Recent partnerships with Kazakhstan, Türkiye, Jordan, and Azerbaijan illustrate this strategic approach, positioning OIA at the intersection of sovereign investment and economic diplomacy. The Oman - Türkiye Fund’s announcement regarding the participation of the Uzbek–Omani Investment Company as a minority investor in a Fund-backed project in Uzbekistan demonstrates OIA’s growing ability to use one bilateral investment platform to reinforce another. In doing so, the network shifts from a collection of standalone investment vehicles into an interconnected, state-supported ecosystem that facilitates the flow of capital, relationships, and expertise across markets. This evolution underscores OIA’s transition from operating a portfolio of bilateral country funds to developing a more flexible co-investment architecture that can be tailored as a fund, joint venture, or investment platform according to the characteristics of each investment opportunity.
Future Fund Oman
Global SWF also highlighted the role of Future Fund Oman. By the end of 2025; it accomplished 986 investment applications had been received, 186 projects had been approved, total project value reached RO 1.72 billion, foreign investment accounted for RO 743 million. The Fund provides a dedicated co-investment platform that enables project evaluation, minority investments, and the attraction of additional investors across sectors including energy, logistics, food, technology, manufacturing, healthcare, and essential services.
The organization noted that OIA follows what it describes as the “Omani Dimension” principle, which links foreign investments to domestic needs by attracting relevant technologies and industrial capabilities to the local market. It highlighted those investments made by the Oman–Türkiye Joint Fund in Samasch and Tekatron are expected to facilitate the supply of sodium bentonite to Omani industries and explore the localization of remotely operated defense technologies in the Sultanate of Oman. As such, foreign investments are closely connected to the inputs, technologies, and industrial capabilities required by the domestic market.
Advancing the national agenda
The global organization also highlighted OIA’s divestment program, which constitutes a key pillar of the Authority’s strategy. The divestment transactions demonstrate how OIA is reshaping state ownership without withdrawing from strategic sectors. This is achieved through public offerings, direct sales, and strategic partnerships that attract foreign capital and enhance operational discipline across state-owned assets, while redirecting proceeds toward sectors of higher strategic value or stronger expected returns. The organization also emphasized OIA’s role in maximizing local content. In 2025, spending on small and medium-sized enterprises (SMEs) reached approximately RO 278 million (USD 722 million), of which RO 186.4 million (USD 484 million) was allocated to holders of the “Riyada” card. These enterprises accounted for 19.9% of total supply-chain expenditure. In addition, OIA launched the “Furas” platform, which provides local suppliers with early access to tenders issued by the Authority and its portfolio companies, thereby transforming OIA’s purchasing power into a strategic tool for promoting local content.
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