OMIFCO’s Underutilised CSR Budget: What It Means for Business Opportunities and Community Investment in Oman
MUSCAT, OCT 22 – Oman’s State Financial and Administrative Audit Authority has revealed that the Oman India Fertiliser Company (OMIFCO) did not fully utilize the funds allocated for its Corporate Social Responsibility (CSR) programme between 2019 and 2022. Although CSR projects approved during this period amounted to RO 11.5 million, this represents only about 55% of the total CSR allocation of RO 20.9 million, indicating a significant portion of the funds remained unspent.
OMIFCO, a joint venture between the governments of Oman and India, operates a fertiliser plant in Sur producing and exporting ammonia and urea fertilisers.
The Authority’s recently released Community Brief 2024 highlights that OMIFCO had approved additional projects valued at approximately RO 5 million. The company stated it is actively working to utilize the remaining funds and implement all approved projects according to the established timeline.
The auditors also identified projects carried out outside the scope of the CSR policy during the 2019–2022 period, totaling RO 537,000. In response, OMIFCO committed to adhering to the Authority’s recommendations by restricting support to projects that comply with its CSR policy and by coordinating with relevant government bodies.
Regarding the year 2022, the Authority noted that OMIFCO did not transfer the mandated minimum of 20% of its CSR budget to the Oman Charitable Organisation (OCO), as required by a decision from the Ministry of Commerce, Industry and Investment Promotion. Instead, only RO 1.2 million, equivalent to 11% of the CSR budget, was initially transferred. The report confirms that the outstanding funds were subsequently paid to the OCO.
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OMIFCO’s underutilization of 45% of its CSR funds from 2019–2022 reveals potential inefficiencies in budget execution that may delay community impact and stakeholder trust. For businesses in Oman, this highlights an opportunity to partner in well-structured CSR projects, while smart investors should monitor how OMIFCO responds to audit recommendations to enhance transparency and policy compliance, reducing reputational and regulatory risks.
