OIA Boosts Profitability of Oman’s SOEs: What This Means for Investors and Entrepreneurs
Oman Investment Authority Achieves Significant Gains, Reports Global SWF
MUSCAT, JUNE 6 – The Oman Investment Authority (OIA) has successfully enhanced the profitability of state-owned enterprises and attracted foreign investment, as confirmed by Global SWF in its latest report. These advancements align with Oman Vision 2040, showcasing OIA’s effective governance structure established after 2020, which has allowed for the management and improvement of government-owned entities.
Although OIA may not rival the world’s largest sovereign wealth funds in size, it has developed a unique operational model. According to Global SWF, OIA plays a crucial role in integrating state-owned enterprise reform with strategic divestments and the promotion of domestic investments, ultimately fostering job creation and supplier development.
Since its establishment, OIA has managed government-owned companies, enhancing their profitability through strategic divestments and public offerings. This approach has attracted foreign capital and improved operational efficiency, effectively reallocating profits to high-value sectors.
Notable successes include the OQ Group, which faced significant operational challenges prior to being incorporated into OIA’s portfolio in 2020. A comprehensive restructuring program led to a 48% reduction in debt, decreasing from RO 5 billion to RO 2.7 billion, while improving the net debt-to-profit ratio from 8.6x to 0.6x by 2025. The company’s investment-grade credit ratings from Fitch and Standard & Poor’s further signify this turnaround.
Similarly, OQ Refineries and Petrochemicals (OQRPI) reported its first-ever profits since joining OIA, generating cumulative profits of RO 474 million between 2021 and 2025 while increasing crude processing capacity. Initiatives to reduce debt totaling RO 2.7 billion are also underway.
The Oman Food Investment Holding Company (Nitaj) and Fisheries Development Oman underwent a successful restructuring that merged the two entities and reformed their management structures. This led to revenue increases of over 93% in the fisheries portfolio and more than 23% growth in Nitaj assets.
Mazoon Dairy, once struggling with operational and financial challenges, achieved financial breakeven in 2024, posting operating profits of RO 3 million due to a detailed operational review and management overhaul. The company experienced a revenue increase of 15% from 2024 to 2025.
Asyad Drydock also witnessed significant recovery through enhanced operational practices and market diversification, achieving a compound annual growth rate of 65.9% in net profit from 2021 to 2025.
In the events sector, the Oman Convention and Exhibition Centre (OCEC) successfully navigated recent challenges, achieving its first-ever operating profit of more than RO 7.6 million in 2025, largely by diversifying revenue streams and reducing dependency on government support.
Global SWF acknowledged OIA’s role in promoting economic stability in a region characterized by geopolitical uncertainty, citing record profits of RO 2.9 billion (USD 7.5 billion), asset growth nearing RO 23 billion (USD 60 billion), and substantial annual returns.
Approximately two-thirds of OIA’s assets are invested domestically, aligning investment strategies with fiscal goals and economic diversification. Recent partnerships with countries such as Kazakhstan and Türkiye have further demonstrated OIA’s commitment to attracting foreign expertise to priority sectors.
The Future Fund Oman reported receiving 986 investment applications and approving 186 projects by the end of 2025, with a total project value of RO 1.72 billion. This fund supports co-investment frameworks across key economic sectors.
OIA’s divestment strategy also plays a crucial role in reshaping state ownership while maintaining a presence in strategic sectors. In 2025, spending on small and medium-sized enterprises reached approximately RO 278 million, significantly enhancing the local economy.
Through these measures, OIA continues to position itself as a key player in advancing Oman’s economic agenda and ensuring sustainable growth.
تحليل خاص من عمانت | تصفح سوق عُمان
The Oman Investment Authority (OIA) is positioning itself as a catalyst for economic resilience, enhancing profitability in state-owned enterprises and attracting foreign investment aligned with رؤية عُمان 2040. This evolution opens up الفرص الاستراتيجية للشركات seeking partnerships, particularly in sectors like energy, healthcare, and logistics, while exposing them to the risks associated with global market fluctuations. Investors and entrepreneurs should prioritize alignments with OIA’s focus on operational efficiency and domestic capabilities to capitalize on the evolving landscape.
