Oman’s Rakiza Fund Secures $1 Billion Global Capital: Impact on Investment Opportunities for Your Business
MUSCAT, DECEMBER 17 — Rakiza, Oman’s inaugural dedicated infrastructure investment fund established by the Oman Investment Authority (OIA), has successfully raised $1 billion in capital from international investors. This funding aims to support the development of key national infrastructure projects while attracting foreign investment.
Muneer Ali Al Muneeri, CEO of the Rakiza Fund, highlighted the fund’s role in creating new investment opportunities within Oman’s infrastructure sector. “Rakiza is the first investment fund in Oman focused solely on infrastructure and is among the first of its kind in the region. Established in 2018, it is designed to bolster the privatisation program, attract foreign direct investment, and promote vital national infrastructure initiatives,” Al Muneeri stated in an interview featured in the latest edition of Enjaz & Eejaz, OIA’s quarterly newsletter.
Since its inception, Rakiza has formulated a distinctive and fully independent investment model equipped for engaging major international investors. Among its significant contributions is the development of Silal, Oman’s Central Fruits and Vegetables Market. This initiative has notably enhanced the country’s food security, reducing summer produce spoilage from 30% to under 5% in just one year, while supporting market regulation through licensed Omani operations.
Furthermore, Rakiza has partnered with a leading British firm to establish Helios Towers Oman, which has improved the telecom infrastructure significantly. This partnership allows operators such as Vodafone to expand their services and has increased electricity access to telecom towers to 99%.
The Fund’s investment in SOHAR Port and Freezone, in collaboration with the Asyad Group and other shareholders, has elevated the container handling capacity to one million TEUs, securing a market share of approximately 31%. Additionally, Rakiza holds a 40% stake in a strategic power plant in Saudi Arabia, developed in partnership with Aramco and a French firm. This investment aligns with a thoughtful expansion strategy focused on social impact and sustainability as per United Nations guidelines.
Looking ahead, Al Muneeri indicated that Rakiza’s future investment priorities will target digital infrastructure and data centers, as well as the education, water, and energy sectors. “Our vision extends beyond mere financial returns; we are committed to making a meaningful and sustainable developmental impact,” he remarked, adding that Rakiza aims to become the preferred infrastructure fund in the region and has initiated plans for a second, larger fund that promises greater impact.
Special Analysis by Omanet | Navigate Oman’s Market
The establishment of Rakiza, Oman’s first dedicated infrastructure investment fund, signals a significant shift towards enhanced foreign investment and privatization in the country. This creates opportunities for businesses to engage with substantial infrastructure projects, particularly in the telecom, food security, and energy sectors. Smart investors should consider aligning with Rakiza’s vision for sustainable development and assess the potential in digital infrastructure and education, positioning themselves for long-term growth in a rapidly evolving market.
