Oman’s sovereign wealth fund boosts assets to $41.5bn

The Oman Investment Authority (OIA) has boosted its assets to $41.5bn as the sultanate’s wealth fund increases its holdings in real estate, technology and logistics.

The OIA, as the fund is known, now manages over OMR16bn of assets in 40 countries and has achieved an annual average return of 10.3 per cent, according to its 2021 annual review. The fund is also investing in stocks, bonds and short-term assets, as well as in logistics, service sector, mining and industrial projects, it said.

The bulk of the OIA’s investments are in the sultanate of Oman, which make up 61.5 per cent of its portfolio. North America accounts for 17 per cent of its holdings, Western Europe 9.3 per cent, and Asia Pacific 4.7 per cent, it said.

Oman in 2020 combined its two wealth funds into one entity that would hold assets valued at about $17bn. Earlier this year, the sultanate split the OIA into two units overseeing local and foreign assets. The so-called Generational Portfolio consists of mostly foreign assets and will focus on “achieving the greatest returns for future generations.”

Regionally, the OIA is one of the smallest managers of state capital and is dwarfed by Saudi Arabia’s Public Investment Fund, which aims to be the world’s biggest with $2tn in assets. The Abu Dhabi Investment Authority, Qatar Investment Authority and Kuwait Investment Authority are also well-entrenched with billions of assets under management.

In October, Ibrahim Al Eisri, director of private equity at OIA, said the wealth fund was looking at deals in the UK due to the falling currency. The Abu Dhabi wealth fund ADQ and the OIA have also identified investments worth $8bn in the sultanate. The funds are looking into new projects across sectors including hydrogen, solar and wind, green aluminum and steel, as well as water and electricity transmission lines.