Oman Investment Authority (OIA) issued its first annual report covering its operations and investments since its establishment on 4 June 2020, pursuant to the Royal Decree No. 61/2020, until 31 December 2021.
This step came in line with Oman Vision 2040 and its pillar concerning governance and institutional performance, which has been developed with a keen focus on promoting access to information and transparency, and in line with OIA’s goals and mandate stipulated in Royal Decree No. 57/2021 promulgating the System of Oman Investment Authority.
In the report’s opening remarks, Sultan Salim Al Habsi, Minister of Finance and OIA’s Chairman commented that despite the challenges and events witnessed during the period covered by the report, development efforts have remained on track with a clear focus on goals.
He noted that, on the contrary, opportunities have emerged and were leveraged to the maximum.
He added that everybody is satisfied with the achievements made by OIA within this short period, a result of the dedicated focus on contributing to the GDP, maximizing returns on investments, and improving governance of the state-owned companies.
In his opening remarks, Abdulsalam Mohammed Al Murshidi, OIA’s Chairman, said that OIA’s key achievements from June 2020 to December 2021 are represented by an average annual return of 10.3 per cent since the establishment of OIA. Moreover, the addition of 35 new investments to OIA’s investment portfolio in private equity markets, in addition to exiting other investments with profitable returns.
The report sheds light on OIA’s key performance overview, including the restructuring of the Boards of Directors of OIA companies and the appointment of national experts and specialists from various public and private sectors as chairpersons. Additionally, the establishment of Rawabet Program for OIA companies in September 2020, the launch of the Code of Governance for OIA Entities, drafted in line with the best local and international practices, and the recruitment of Omani talents to have a total workforce of 271 employees.
The report also highlighted the addition of new investments to OIA’s portfolio, which now spans geographically in 40 countries worldwide. These new investments include investment in SpaceX, a US company specialising in space exploration technologies, the establishment of an investment fund with China Merchant Bank International (CMBI) with a focus on future technologies, the establishment of the Muscat Stock Exchange pursuant to the Royal Decree No. 5/2021 and the investment in Mycotechnology, a US company specialied in alternative food using the latest technologies.
The report also featured the profitable returns OIA was able to achieve from certain exits, including its complete exit from Cognate BioServices, a US company operating in the manufacturing of medical equipment, achieving 3.15x returns with an IRR of 42 per cent, complete exit from Migros Stores in Turkey where the returns on investment increased by 1.11x, with an IRR of 1.6 per cent, complete exit from RAK Ceramics in the United Arab Emirates (UAE) and with 1.13x returns on investment and an IRR of 2.1 per cent, partial exit from US information technology firm First Data with 1.34x returns on investment and an IRR of 2.6 per cent.
In regards to joint investments established in partnership with several friendly nations, Vietnam-Oman Investment (VOI) entered a new investment agreement with CMES Company, a significant player in the renewable energy market, developing rooftop solar power systems. Moreover, VOI fully exited from Van Lang University with an IRR of 47 per cent and 18 per cent successively and partially exited from one investment with an IRR of 25 per cent and 65 per cent returns from the invested capital.
Oman Brunei Investment Company succeeded in increasing its capital to US$200mn by utilising available opportunities and expanding its existing investments in Brunei and obtaining the Board of Directors’ approval to establish a private school in Muscat in partnership with Amity Group, which is a renowned educational services institution.
Additionally, Oman Spain Fund for Private Equity launched a new investment in Symborg, an international firm engaging in agricultural biotechnology.
The publication of OIA’s annual report comes in the realisation of Oman Vision 2040’s focus on sound governance of the State’s administrative apparatus, national resources, and projects. The report comes in 88 pages and features a variety of topics, including OIA’s investment strategy, the performance of OIA’s investment portfolios, joint strategic projects, and local investments represented in OIA companies, in addition to other critical themes such as governance, transparency, the internal operational activities of OIA, and Rawabet Program.
