Future Fund Oman Gives $5bn Boost To Sultanate’s Non-Oil Economy

26 Jan 2024 Issue: 67 / 4 By: James Marriott

Muscat is creating a $5bn fund earmarked for projects outside its core oil & gas sector as it hopes to invigorate its non-oil economy. Attracting foreign investment is made more challenging by competition for funds from big-spending neighbors.

Oman’s $5bn Future Fund was announced at the beginning of the year as part of the 2024 budget on the back of bumper surpluses from recent hydrocarbon windfalls (MEES, 26 January & MEES, 5 January). Officially launched on 17 January, the fund aims to provide a shot in the arm for the sultanate’s non-hydrocarbon economy.

Up to $1bn each year for a five-year period will be administered by the Oman Investment Authority (OIA), the sultanate’s sovereign wealth fund. Of this, 90% is earmarked for new or existing projects and the remaining 10% for small and medium enterprises (SMEs) and startups. Allocations are limited to $260mn for individual projects with the Fund to provide a maximum of 40% of the total funding requirement for any given project. (CONTINUED - 964 WORDS)