Future
Fund Oman Approves Projects Worth RO 1.2 Billion
Muscat,
23 Jul (ONA) — Future Fund Oman (FFO) has demonstrated positive performance
during its first year of operations, having approved 44 projects with a total
project value of approximately RO 1.2 billion.
FFO’s
contribution to these projects amounted to RO 333 million, while foreign
capital contributions reached RO 885 million. This reflects growing
international confidence in Oman’s investment environment, according to a
report by the Oxford Business Group (OBG) covering FFO’s performance in 2024.
The report highlighted the Fund’s pivotal role in stimulating economic
diversification and expanding the investment base in line with Oman Vision
2040.
The
report noted that Oman Investment Authority (OIA) established FFO with a capital
of RO 2 billion, to be allocated over five years, as a key instrument to
support sustainable growth and enhance the resilience of the national economy.
The Fund operates within a comprehensive strategic framework designed to
stimulate investment in promising high-potential sectors such as industry,
renewable energy, ICT, agriculture, fisheries, and tourism, alongside emerging
fields such as e-commerce, fintech, and electric vehicles.
The
report also emphasized that FFO’s role goes beyond providing capital; it aims
to empower SMEs, support venture capital firms, and foster an innovation
ecosystem. This aligns with the Fund’s structure, which allocates 90% of its
capital to major national projects, while 10% is dedicated to supporting SMEs
and venture-backed startups. Through this strategic capital distribution, the
Fund complements the National Development Fund (NDF) and the Future Generation
Fund (FGF), working together towards realizing Oman’s Vision 2040.
The
report praised the recent legal and regulatory improvements in Oman aimed at
attracting foreign investment and diversifying income sources. These reforms
include the introduction of a new law allowing 100% foreign ownership in most
sectors, the launch of the “Invest in Oman” platform as a unified digital
gateway to streamline licensing procedures, and the update of the list of
activities prohibited for foreign ownership, now reduced to only 123
activities. Other initiatives include the implementation of the privatization
law, which enabled transferring government assets to the private sector and
international investors through IPOs.
As
a result of these improvements and OIA’s efforts, FFO has been able to
contribute significantly to the national economy through quality projects
approved during its first year. These projects include investment funds, major
national projects, and initiatives supporting SMEs and startups.
The
report highlighted the Fund’s collaboration with Chinese partners to launch two
investment funds. The first, the ‘IDG Oman Fund’, was launched in partnership
with ‘IDG Capital’ to invest its entire capital of USD 200 million within Oman,
targeting ICT, renewable energy, and electric vehicles. The fund focuses on
attracting foreign direct investment and supporting the growth of advanced
industries and clean technologies, marking a strategic step towards building an
advanced industrial base in the Sultanate of Oman.
In
addition, FFO partnered with the Chinese firm ‘EW Partners’, which focuses on
investments in the Middle East and North Africa, developing an investment
platform that connects leading Chinese companies with expansion opportunities
in the GCC. The partnership resulted in the establishment of the ‘EWTP Oman
Fund’ with a capital of USD 250 million, aiming to invest the entire amount
within Oman in sectors such as ICT, renewable energy, tourism, and agriculture.
This fund’s importance lies in its focus on attracting leading Chinese
industrial companies to establish their regional operations in Oman, creating
local job opportunities, and strengthening supply chain capabilities, which
aligns with the OIA’s “Oman Angle” philosophy.
In
addition to creating investment funds, FFO has undertook a crucial role in
supporting major national projects such as the United Solar Polysilicon Plant
in Sohar Free Zone. This project is the largest of its kind outside China, with
a production capacity of 100,000 tons of polysilicon.
Abdulsalam
Al Murshidi, President of OIA, highlighted the project’s added value in his
interview with OBG, saying: “FFO has successfully established a value chain in
Oman by investing in the United Solar Polysilicon plant in Sohar, reinforcing
Oman’s position as an influential player in the renewable energy sector.”
According to the report, this project is expected to enable Oman to capture
4.4% of the global polysilicon market, estimated at USD 37.3 billion.
The
report also noted FFO’s support for SMEs and startups, having approved several
related projects, including Q-Pay, Oman’s first certified “Buy Now, Pay Later”
provider; Bima, a digital insurance services platform; and the SERB Project for
managing drone traffic.
Furthermore,
the report detailed the FFO’s five-year strategic vision (2024–2028) and its
expected economic impact. Projects approved by FFO in 2024 alone are anticipated
to create over 1,600 direct jobs, diversify the economy to reduce reliance on
oil and gas, empower entrepreneurial ventures, and foster innovation. These
objectives align with the pillars of Oman Vision 2040, which aims to build a
productive and diversified economy led by the private sector, support
sustainable development through clean energy and green industries, create jobs,
develop local talent, and transfer knowledge to Omani workers while
strengthening local and international partnerships in renewable energy and
advanced technologies.
OBG
concluded its report by affirming that FFO is an effective tool for
implementing Oman’s strategy to transition towards a diversified, sustainable
economy based on innovation and high-quality partnerships. This will enhance
Oman’s position as an attractive regional and global investment hub and
reinforce OIA’s commitment to a long-term investment philosophy.
—Ends/AG
