Friday, March 29, 2024 | Ramadan 18, 1445 H
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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

State General Reserve Fund guarantees better future

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The positive strides made by the State General Reserve Fund in 2018, returns at 7 per cent, since its inception, is a big achievement in light of the situation in the world where majority of international investments in a variety of sectors have seen mixed results.


The State General Reserve Fund represents a great significance in terms of being the main source of public finance through which the deficit was filled during the last few years. Further, the fund is considered the most assured guarantee for better future for Omani generations to have the means and tools to address fluctuations in economic situation. The fund has succeeded in building safe reserves through many steps taken for building financial capacities in the form of investments which have a vital role in making more earnings and returns.


The disclosure policy followed by the State General Reserve Fund through which the fund announces the results and returns of its investments is a very big step forward, although most of the sovereign funds all over the world have tightened the disclosure policy. The annual report issued by the fund aims to educate people and local communities on the efforts, results and plans for future investments.


Although the fact that all related data and statistics released by the State General Reserve Fund are very sensitive, this disclosure is seen as a moral duty that can help citizens to


know the moves the State General Reserve Fund takes.


The investments the State General Reserve Fund pumped in the last few years reflects the fact of having some sort of strategy with a clear path locally and internationally. At the domestic level, this approach in investments contributes to optimising of all funds pumped locally through partnerships and merger to upgrade the financial and economic performance of local enterprises, establishments and companies through a varied and integrated economic system.


Keeping an eye on optimising the value added, enriching national economy, transforming latest technologies and recruiting efficiencies, the fund, on the contrary to what is followed internationally, directs the majority of investments to the domestic front.


The promising “Nakheel Oman Development Company” which was established by one the fund affiliates to develop and expand investments in dates is the best evidence that the fund aims at enhancing and supporting the domestic agriculture sector and industries.


This step was backed by taking over Oman Chromite Company SAOG under the management of Minerals Development Oman which has entered into partnership with the private sector for enhancing the added value to the mining sector. All these efforts for enriching the national economy were supported by the move on the part of the Ministry of Finance to transform its share in Omani companies to national sovereign funds and public holding companies.


All these efforts contribute to the reformation of investment in different sectors which leads to more self-sufficiency and higher level of financial performance and governance.


Further, the State General Reserve Fund stretched its arms to high tech as the most assured pathway to future prosperity by establishing Innovation Development Oman Holding SAOC, investing in international and multinational companies for localising latest technologies, and attracting world- class companies, such as GlassPoint. Thus, the State General Reserve Fund moved from providing financial reserves to developing production in a variety of sectors.


Of course, these efforts and successes made by the State General Reserve Fund can’t be covered fully in this brief. But no one can deny these efforts and successes have great impact on building local investments with value added to support national economy.


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