OIA generates 10% annual returns from overseas investments

Muscat: Oman Investment Authority (OIA) has generated over 10 per cent average annual returns from its investments in 40 countries, the OIA said in its first annual report released on Wednesday.

“Despite the challenges and events witnessed during the period covered by the report, development efforts have remained on track with a clear focus on goals,” Sultan Al-Habsi, Minister of Finance and OIA’s Chairman said in the report’s opening remarks.

He elaborated that “Opportunities have emerged and were leveraged to the maximum, adding that “everybody is satisfied with the achievements made by OIA within this short period, a result of the dedicated focus on contributing to the gross domestic product GDP), maximising returns on investments and improving governance of the state-owned companies.”

“OIA’s key achievements from June 2020 to December 2021 are represented by an average annual return of 10.3 per cent. Moreover, the addition of 35 new investments to OIA’s investment portfolio in private equity markets as well as exiting other investments also provided profitable returns,” Abdulsalam Al Murshidi, OIA’s Executive President, said in his remarks.

The report also highlighted the addition of new investments to OIA’s portfolio, which now spans 40 countries. These new investments include investment in SpaceX, a US company specialising in space exploration technologies, the establishment of an investment fund with China Merchant Bank International (CMBI) with a focus on future technologies, the establishment of Muscat Stock Exchange pursuant to the Royal Decree No. 5/2021 and the investment in Mycotechnology, a US company specialised in alternative food using latest technologies.

The report also featured the profitable returns OIA made from certain exits, including its complete exit from Cognate BioServices, a US company manufacturing medical equipment, achieving 3.15 times returns with an internal rate of return (IRR) of 42 per cent, complete exit from Migros Stores in Turkey where the returns on investment increased by 1.11 times, with an IRR of 1.6 per cent, complete exit from RAK Ceramics in the UAE and with 1.13 times returns on investment and an IRR of 2.1 per cent, partial exit from US information technology firm First Data with 1.34 times returns on investment and an IRR of 2.6 per cent.

With regard to investments in partnership with several friendly nations, Vietnam-Oman Investment (VOI) entered a new investment agreement with CMES Company, a significant player in the renewable energy market, developing rooftop solar power systems. Moreover, VOI fully exited from Van Lang University with an IRR of 47 per cent and 18 per cent successively and partially exited from one investment with an IRR of 25 per cent and 65 per cent returns from the invested capital.

Oman Brunei Investment Company succeeded in increasing its capital to $200 million by utilising available opportunities and expanding its existing investments in Brunei and succeeded in obtaining the Board of Directors’ approval to establish a private school in Muscat in partnership with Amity Group, which is a renowned educational services institution.

Additionally. Oman Spain Fund for Private Equity launched a new investment in Symborg, an international firm engaging in agricultural biotechnology.

The OIA’s annual report is in tune with Oman Vision 2040’s focus on sound governance of the State’s administrative apparatus, national resources and projects. The report features a variety of topics, including OIA’s investment strategy, the performance of OIA’s investment portfolios, joint strategic projects and local investments represented in OIA Companies, in addition to other critical themes such as governance, transparency, internal operational activities of OIA and Rawabet Programme.

The report sheds light on OIA’s key performance overview, including the restructuring of the Boards of Directors of OIA companies and the appointment of national experts and specialists from various public and private sectors as chairpersons. Additionally, it highlights the establishment of Rawabet Programme for OIA Companies in September 2020, the launch of the Code of Governance for OIA Entities, drafted in line with the best local and international practices and the recruitment of Omani talents to have a total workforce of 271 employees.