FFO Approves RO 1.2 Billion Projects: Key Insights on Investment Opportunities for Oman’s Business Sector
Future Fund Oman Achieves Remarkable Milestones in Its First Year
The Future Fund Oman (FFO) has demonstrated impressive results in its inaugural year by approving 44 projects with a total investment value of approximately RO 1.2 billion. Of this amount, RO 333 million was provided directly by the Fund, while the remaining RO 885 million came from international investors, underscoring a growing global confidence in Oman’s investment landscape, as noted by the Oxford Business Group (OBG).
Established by the Oman Investment Authority (OIA), the Future Fund Oman features a capital allocation of RO 2 billion over a five-year period. This initiative plays a crucial role in advancing the goals of Oman Vision 2040, focusing on economic diversification and expanding the nation’s investment portfolio. The Fund targets high-potential sectors such as industry, renewable energy, information and communication technology (ICT), agriculture, fisheries, and tourism, while also exploring emerging sectors like e-commerce, fintech, and electric vehicles.
OBG’s 2024 review highlights that the Fund’s mission extends beyond just capital allocation; it also emphasizes support for small and medium-sized enterprises (SMEs), venture capital firms, and the development of a national innovation ecosystem. In alignment with the National Development and Generations portfolios, 90% of the Fund’s capital is dedicated to large-scale projects, with the remaining 10% focused on supporting SMEs and venture capital initiatives.
The report praised recent regulatory reforms in Oman aimed at enhancing the nation’s attractiveness to international investors. Significant changes include new legislation permitting 100% foreign ownership in most sectors, the launch of the unified “Invest Oman” digital platform to streamline licensing processes, and a reduction in the prohibited foreign ownership list to 123 activities. Additionally, the implementation of the Privatization Law has facilitated the transfer of state assets to private and international investors through public offerings.
These reforms have enabled the Future Fund Oman to facilitate investments in various impactful projects, including large-scale national initiatives as well as ventures led by SMEs and startups. Among the Fund’s notable international partnerships are two joint investment funds established with Chinese firms.
The first partnership is the IDG Oman Fund, a $200 million initiative in collaboration with IDG Capital Group, focusing on investments in ICT, renewable energy, and electric vehicles. This fund aims to attract foreign direct investment in clean technologies and advanced industries.
The second partnership, with EW Partners, has led to the establishment of the EWTP Oman Fund, valued at $250 million. This fund focuses on investments in ICT, renewable energy, tourism, and agriculture in Oman, seeking to attract Chinese industrial companies to establish regional operations in the Sultanate, thereby boosting local employment and supply chain capabilities.
A significant national project backed by the Fund is the United Solar Polysilicon Factory located at the Sohar Port and Freezone. Marketed as the largest facility of its kind outside of China, this plant is projected to produce 100,000 tonnes of polysilicon annually, positioning Oman to secure approximately 4.4% of the global polysilicon market, valued at $37.3 billion.
In addition to large initiatives, the Fund has also supported innovative SME and startup ventures such as Qpay, Oman’s first nationally certified buy-now-pay-later platform; Bima, a digital insurance platform; and Serb, a drone traffic management project.
OBG’s report outlines the Fund’s five-year roadmap from 2024 to 2028, anticipating significant economic contributions from its 2024 investments. Forecasted outcomes include the creation of over 1,600 direct jobs, accelerated economic diversification away from oil and gas dependency, and enhanced support for entrepreneurship and innovation. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The Future Fund Oman (FFO) signals a transformative investment landscape for businesses in Oman, with a strategic focus on economic diversification across key sectors. As foreign investment flows rise, opportunities abound in renewable energy, ICT, and burgeoning industries like e-commerce and fintech, making it crucial for smart investors and entrepreneurs to align with these sectors to leverage growth and innovation. However, the evolving regulatory environment also poses challenges, and stakeholders should proceed with due diligence to navigate emerging risks effectively.
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