Oman Investment Fund

The Oman Investment Fund (OIF) is a sovereign wealth fund,established in 2006 in accordance with a Royal Decree of His Majesty the Sultan of Oman. The Fund makes medium to long-term investments, globally and domestically, to diversify the government of Oman's asset base and create a pool of sustainable cash flows for the Sultanate.[1] Currently, the OIF's assets under management are estimated at approximately US$6 billion.

History

The OIF was established in 2006 and was the successor to the Oman Oil Fund, which was formed in 1993 to invest in the domestic oil industry. OIF further received an additional US$1 billion from the Omani government expanding its Assets Under Management.

Strategy and objectives

The fund is legally prohibited from publicly disclosing information about its investment strategy or asset allocation. It is therefore only possible to estimate its funds under management, and a full list of its investments is not publicly available.

OIF has a long-term investment horizon, and its mandate includes seeking above-average returns. The fund's primary objective upon its establishment was to generate economic growth in the Sultanate of Oman, through direct investment in domestic companies, by assisting foreign companies to extend their investments and operations in Oman, or by facilitating knowledge and technological transfer to domestic entities.

The OIF has made investments in real estate and private equity. Other investment sectors in which OIF has historically invested include:

  • Travel and leisure
  • Media and entertainment
  • Industrial goods and services
  • Industrial transportation and engineering
  • Financial services
  • Utilities
  • Telecom infrastructure

Given the OIF's imperative to generate above average-returns through long-term investments, the fund has shown a particular interest in emerging industries within Oman, as well as markets with promising growth potential. OIF has shown a preference for high-growth emerging markets, such as India, where Oman has historical trading ties.

Governance

OIF’s sole shareholder is the Government of the Sultanate of Oman. It is overseen by Financial Affairs and Energy Resources Council (FAERC) and the Ministry of Finance of Oman.[1]

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References
  1. SWF Institute. "Oman Investment Fund". SWF Institute.
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