Future Fund Oman Approves RO 1.2 Billion in Projects: Key Opportunities for Investors and Businesses
Future Fund Oman (FFO) Reports Strong Progress in Its First Year
Future Fund Oman (FFO) has shown impressive results in its inaugural year, approving 44 projects valued at approximately RO 1.2 billion. The Fund’s investment contribution amounted to RO 333 million, complemented by RO 885 million in foreign capital. This growth underscores increasing international confidence in Oman’s investment landscape, as highlighted in a report by the Oxford Business Group (OBG) focusing on FFO’s 2024 performance.
Established by the Oman Investment Authority (OIA) with a capital of RO 2 billion to be allocated over five years, FFO serves as a vital tool for promoting sustainable growth and enhancing the resilience of Oman’s economy. Its strategic framework aims to stimulate investments in high-potential sectors such as industry, renewable energy, ICT, agriculture, fisheries, and tourism, alongside emerging fields like e-commerce, fintech, and electric vehicles.
The report underlines that FFO’s ambitions extend beyond capital provision; it seeks to empower small and medium-sized enterprises (SMEs), support venture capital firms, and nurture an innovation ecosystem. Accordingly, 90% of its capital is directed towards major national projects, while 10% supports SMEs and venture-backed startups, reinforcing collaboration with the National Development Fund (NDF) and the Future Generation Fund (FGF) in achieving Oman’s Vision 2040.
Enhancements in Oman’s legal and regulatory framework aimed at attracting foreign investment were also highlighted. These include a new law permitting 100% foreign ownership in most sectors, the launch of the "Invest in Oman" platform to streamline licensing procedures, and a reduction in the number of prohibited foreign ownership activities to just 123. Additional initiatives involve the privatization law facilitating the transfer of government assets to the private sector and international investors via IPOs.
Thanks to these advancements and OIA’s efforts, FFO has made significant contributions to the national economy through high-quality projects approved during its initial year. The portfolio includes investment funds and major national initiatives supporting SMEs and startups.
The report celebrates FFO’s collaboration with Chinese partners, leading to the establishment of two notable investment funds. The IDG Oman Fund, in partnership with IDG Capital, will invest its full capital of USD 200 million in Oman, focusing on ICT, renewable energy, and electric vehicles. This fund aims to attract foreign direct investment and advance the growth of high-tech industries and clean technologies, which is a strategic move toward developing an advanced industrial base in Oman.
Additionally, FFO partnered with Chinese firm EW Partners to create an investment platform that links prominent Chinese companies with opportunities in the GCC. This collaboration resulted in the EWTP Oman Fund, capitalized at USD 250 million, directed towards sectors such as ICT, renewable energy, tourism, and agriculture. The fund aims to invite leading Chinese industrial firms to establish regional operations in Oman, thus generating local jobs and enhancing supply chain capabilities, in line with OIA’s "Oman Angle" philosophy.
Beyond fund creation, FFO has played a key role in vital national projects, such as the United Solar Polysilicon Plant in Sohar Free Zone. This facility represents the largest project of its kind outside China, boasting a production capacity of 100,000 tons of polysilicon. Abdulsalam al Murshidi, President of OIA, remarked on the project’s significance, stating that it helps foster a value chain within Oman and bolsters its position in the renewable energy sector. The project is projected to enable Oman to capture 4.4% of the global polysilicon market, valued at approximately USD 37.3 billion.
The report also noted FFO’s support for SMEs and startups, with various projects approved, including Q-Pay, Oman’s first certified “Buy Now, Pay Later” provider, a digital insurance platform called Bima, and the SERB Project for managing drone traffic.
Looking ahead, the report elaborates on FFO’s five-year strategic vision (2024–2028) and its anticipated economic impact. Projects approved in 2024 are expected to generate over 1,600 direct jobs, contribute to economic diversification, empower entrepreneurial ventures, and stimulate innovation. These goals align seamlessly with the pillars of Oman Vision 2040, which seeks to foster a productive, diversified economy led by the private sector, support sustainable development through clean energy and green industries, create jobs, develop local talent, and enhance knowledge transfer to Omani workers while strengthening both local and international partnerships in renewable energy and advanced technologies.
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The successful launch of the Future Fund Oman (FFO), which has approved 44 projects worth approximately RO 1.2 billion, signals growing international confidence in Oman’s investment climate. Businesses should seize the opportunity to align with sectors highlighted by the FFO, particularly in renewable energy and technology, as these areas are poised for significant growth. Investors should consider engaging with emerging projects and partnerships, especially those that foster innovation and empower SMEs, to capitalize on the evolving landscape driven by Oman Vision 2040.
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