Oman Investment Authority (OIA) assets by the end of 2022 increased to RO18bn, after realising an 8.8% return on investment during the year.
This was indicated in the annual report published by OIA which provides a comprehensive overview of its business activities, investments, and key developments for the year 2022.
This marks the second annual report published by OIA and reflects OIA’s unwavering commitment to transparency and good governance, as well as its ongoing efforts to engage with the public and stakeholders.
OIA continued its support of the state’s general budget with dividends that amounted to RO5.6bn from 2016 to the end of 2022. Moreover, it showcased OIA’s commitment to creating job opportunities for nationals with over 800 job opportunities created in OIA and its companies for Omanis.
Additionally, SMEs have been awarded tenders and contracts worth about RO190mn, demonstrating OIA’s ongoing efforts to support small and medium-sized enterprises and underscoring OIA’s crucial role in driving economic growth and development of the national economy.
HE Sultan Salim Al Habsi, Minister of Finance and Chairman of the Board of Directors of OIA, said that OIA approached all circumstances and challenges in 2022 prudently. It developed strategies in line with future economic analyses and expectations, with an emphasis on diversifying investments and mitigating risks.
In his opening message in the report, Al Habsi added that the economic conditions did not constitute an obstacle to OIA’s continuous journey toward promoting economic development and achieving financial sustainability in the Sultanate of Oman. Through its investments that spread across more than 50 countries globally, OIA managed to record good returns on investment and rewarding profits.
This includes the Future Generations Fund; with investments in public and private markets, the fund realised a relatively better financial performance compared to a number of global sovereign funds. Meanwhile, the National Development Portfolio, which includes more than 160 companies in Oman, achieved total profits of more than RO1.4bn.
HE Abdulsalam Mohammed Al Murshidi, President of OIA, stressed in his foreword in the report that OIA addressed the events and economic conditions of 2022 through balanced plans and prudent investment decisions in line with local and global changes.
As a result, OIA realised good performance and productivity outcomes and expanded its investments. Nationally, OIA companies launched ten national projects across a number of governorates in some of the targeted sectors that have the potential to contribute to the desired economic stimulus, working hand in hand with the private sector and creating job opportunities for youth and business opportunities for SMEs.
Internationally, OIA invested in Group-14, a leading company that manufactures silicon anode car batteries, Crusoe Energy, which developed an innovative technology to capture flare gas emissions to generate clean energy and Ascend Elements, a company that developed an innovative technology for recycling lithium-ion batteries. In addition, OIA invested in 13 private equity funds across a number of continents, such as Europe, Asia, and North America.
The report delved into the positive impact of the Code of Governance for OIA Entities, which was published at the beginning of 2022. It helped the companies improve their outcome, enhance their performance, generate profits, and helped in reducing debts. OIA Companies reduced their debt by 23.4% as a result of a structured plan that targeted the payment of RO3bn, including the prepayment of RO600mn.
The report sheds light on OIA’s divestment plan, which aims to enable the private sector to lead the Omani economy and enhance its contribution to driving economic development. As for OIA’s divestment activities in 2022, it oversaw the listing of the Pearl REIF, Oman’s the first real estate fund, on the Muscat Stock Exchange (MSX), as well as divesting from the International Maritime College Oman and preparing six assets in different sectors for divestment during 2023.
OIA aims to utilise the returns from these divestments by directing them to investments in new sectors. The report also highlighted OIA’s positive efforts to attract foreign investments in its mandates. OIA signed agreements with its Saudi counterpart on investment opportunities in some projects at a value of RO4.5bn. This includes the completion of the second phase of the Yiti Project and the Rakiza Fund.
In addition, OIA signed agreements on some investments with the Emirati side, which include the Oman-Etihad Rail Company and increasing the capital of Oman Technology Fund (OTF).
The report indicates that OIA and its companies follow the government’s directives in regard to enhancing local content by maximising In-country value efforts. In this regard, 4,700 SMEs were awarded contracts and tenders worth around RO190mn, which represents 10.9% of the total spending on the supply chain in OIA and its companies, of which Riyada holders constituted 3.9%.
The report reflects the special attention OIA pays to recruiting and developing national competencies. It reported that the number of employees at OIA and its companies exceeded 38,000 employees, with a total Omanisation rate of 78%, with more than 1,700 jobs out of 4,000 identified for potential Omanisation within the next five years.
The forty-one-page annual report addressed a number of topics, most notably OIA’s governance, the geographical distribution of its assets, and key updates about its strategic partnerships, companies, and other important topics.
OIA ranked second in the world, in the index of the development of governance and sustainability performance between 2022 and 2023, with an increase of 28%, compared to 200 international sovereign wealth funds.
According to a new report issued by the Global SWF platform that highlighted OIA’s commitment to international norms and principles, governance and transparency standards, and the disclosure principles and practices issued by the International Forum of Sovereign Wealth Funds (IFSWF), adding that the data issued by OIA reflect on the investments and their strategies, in line with the goals of sustainable development.
