Oman’s economy is heavily dependent on the oil sector, which contributes nearly 30% of its GDP, 60% of goods exports, and 70% of government fiscal receipts, according to an S&P report. However, the report also provides a hopeful outlook, anticipating increased hydrocarbon production in 2024 and 2025 to bolster the economy.

To enhance economic diversification, the Oman Investment Authority (OIA) has introduced a new fund with a capital of $5.2 billion. The Future Fund Oman will be gradually integrated over the next five years at a rate of $1 billion annually.

Also, the OIA stated that the fund would allocate 90% of its capital to directly investing in commercially and economically viable new or existing large-scale projects located in the Sultanate. Additionally, 7% of its capital will be dedicated to supporting small and medium-sized enterprises (SMEs), while the remaining 3% will be invested in startups.

The statement further emphasized that the fund will prioritize empowering the private sector, attracting foreign direct investment (FDI), supporting SMEs, and fostering venture capital.

Established in 2020 to enhance the management of the government’s financial assets and public enterprises, the OIA intends to divest a portion of its stakes in various companies. Its assets are managed through the Future Generations Fund (FGF) and the National Development Fund (NDF).

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