The Oman Investment Fund is a

sovereign wealth fund A sovereign wealth fund (SWF), or sovereign investment fund, is a state-owned investment fund that invests in real and financial assets such as stocks, Bond (finance), bonds, real estate, precious metals, or in alternative investments such as ...

, established in 2006 in accordance with a royal decree of His Majesty the Sultan of

Oman Oman, officially the Sultanate of Oman, is a country located on the southeastern coast of the Arabian Peninsula in West Asia and the Middle East. It shares land borders with Saudi Arabia, the United Arab Emirates, and Yemen. Oman’s coastline ...

. The fund makes medium to long-term

investments Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...

, globally and domestically, to diversify the government of Oman's asset base and create a pool of sustainable cash flow. As of December 2024, the fund's

assets under management In finance, assets under management (AUM), sometimes called fund under management, refers to the total market value of all financial assets that a financial institution—such as a mutual fund, venture capital firm, or depository institutio ...

are estimated at approximately US$50 billion.

History

The Oman Investment Fund 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 The petroleum industry, also known as the oil industry, includes the global processes of exploration, extraction, refining, transportation (often by oil tankers and pipelines), and marketing of petroleum products. The largest volume products ...

. The fund received an additional US$1 billion from the Omani government expanding its

Strategy and objectives

The fund is legally prohibited from publicly disclosing information about its

investment strategy In finance, an investment strategy is a set of rules, behaviors or procedures, designed to guide an investor's selection of an investment portfolio. Individuals have different profit objectives, and their individual skills make different tactics ...

asset allocation Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investm ...

. It is therefore only possible to estimate its funds under management, and a full list of its investments is not publicly available. The fund has a long-term investment horizon, and its mandate includes seeking above-average returns. Its primary objective upon its establishment was to generate economic growth in the

Sultanate of Oman Oman, officially the Sultanate of Oman, is a country located on the southeastern coast of the Arabian Peninsula in West Asia and the Middle East. It shares land borders with Saudi Arabia, the United Arab Emirates, and Yemen. Oman’s coastline ...

, 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 fund has made investments in real estate and

private equity Private equity (PE) is stock in a private company that does not offer stock to the general public; instead it is offered to specialized investment funds and limited partnerships that take an active role in the management and structuring of the co ...

. Other investment sectors in which it 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 Oman Investment Fund's imperative to generate above average-returns through long-term investments, it has shown a particular interest in emerging industries within Oman, as well as markets with promising growth potential. It has shown a preference for high-growth emerging markets, such as India, where Oman has historical trading ties.

Governance

The fund's sole shareholder is the Government of the Sultanate of Oman. It is overseen by Financial Affairs and Energy Resources Council and the Ministry of Finance of Oman.

References

{{Reflist Companies of Oman Sovereign wealth funds