Oman Investment Authority's Assets Surge 6.2% to $530 Billion in 2024

The Oman Investment Authority (OIA) has reported a significant increase in its total assets, reaching 530 billion dollars in 2024, up from 498.9 billion dollars in 2023. This growth is accompanied by a net profit of 41.2 billion dollars, with 21 billion dollars available for transfer to the national budget. The investments are diversified across more than 50 countries and regions globally, reflecting a strategic approach to asset management and financial stability. This increase in assets and profits underscores the OIA's effective investment strategies and its role in supporting the national economy. The OIA's ability to generate substantial profits and contribute to the national budget highlights its importance in Oman's financial landscape. The diversification of investments across multiple countries and regions further demonstrates the OIA's commitment to risk management and long-term financial sustainability.

In 2024, the OIA's investments were spread across various sectors and regions. The largest portion of investments, 61.3%, was allocated to domestic projects. North America followed with 19.9%, while the remaining investments were distributed across Europe, Asia, Africa, and Latin America. The sectoral allocation included 68% in energy, 9% in tourism and real estate, and 8% each in services and logistics. This diversified investment strategy aims to mitigate risks and ensure stable returns.

The OIA operates through three main funds: the National Development Fund (NDF), which focuses on local energy, transportation, and mining projects; the Future Generations Fund (FGF), which targets international innovative investments in areas such as AI, healthcare, fintech, and energy transition; and the newly established Oman Future Fund (FFO), which aims to attract foreign investment and develop local business benchmarks through leverage. In January 2024, the FFO committed 865 million dollars to several projects, including the Sohar polysilicon plant, which is set to become one of the largest polysilicon plants outside of China.

Despite the 41.2 billion dollars net profit in 2024, the OIA's annual profit decreased by 7.81% compared to the previous year, resulting in a reduction of approximately 296 million dollars. The OIA also reported repaying 47 billion dollars in debt, including 14 billion dollars owed by the state-owned energy group OQ. Additionally, the OIA reduced its sovereign guarantees to 47 billion dollars, nearly half of the 2023 level, and divested six assets. These financial maneuvers reflect the OIA's proactive approach to debt management and asset optimization.

Looking ahead, the OIA plans to expand its investments in renewable energy, digital infrastructure, and critical minerals while reducing its reliance on oil and gas businesses and divesting non-core assets. This strategic shift is in response to the increasing volatility in the energy market and geopolitical risks. The OIA's proactive measures to diversify its investment portfolio and reduce debt demonstrate its commitment to long-term financial stability and sustainability. The OIA's strategic investments and financial management practices position it as a key player in Oman's economic development and financial stability.