OIA announces division of asset portfolios

Muscat: Aimed at contributing to national economic growth and supporting the state’s budget, Oman Investment Authority on Sunday announced the division of its assets into two main portfolios – The National Development Portfolio and the Future Generations Portfolio.

Abdulsalam bin Muhammad al Murshidi, chairman, Oman Investment Authority, said the division of the Authority’s assets into two portfolios are with clear objectives and specific competencies for each of them, while ensuring that there is no overlap between them.

The National Development Portfolio will manage assets of more than 160 local companies and aims to contribute to the growth and development of the Omani economy, in addition to supporting the state’s general budget through dividend distributions, privatization proceeds, and treasury management.

The Future Generations Portfolio consists of foreign assets and some local assets in public and private markets, in addition to real estate.

Confirmation of the principle of transparency that it adopts in order to enhance and develop the general performance of its subsidiaries.

The national development portfolio’s eight priorities include financial sustainability by enhancing profitability and increasing the contributions of the tourism, agriculture, fisheries, and technology sectors, and reducing total debt over the next five years by an average of 32 percent.

The second priority is based on growth in the selected sectors, where the total capital expenditures between 2022 and 2026 will amount to about RO6.7 billion, and 30 percent of capital expenditures will be invested in new growth projects.

The third priority aims to contribute to the GDP and the fourth priority seeks to attract private investors through new investments, exit from current investments, and privatization, as it is expected to bring in an estimated RO1 billion in 2022 for private sector investments.

As per the fifth priority, the Sovereign Fund will sell more than 20 assets during the period between 2022 and 2026 with an estimated value of RO2.6 billion.