Monday 01 / July / 2024
Muscat: The National Development Portfolio, managing the Oman Investment Authority’s (OIA) investments within the Sultanate of Oman, achieved remarkable success in enhancing economic diversification efforts in 2023.
This success was driven by the initiation and announcement of local projects across major sectors, including energy, industry, tourism, food and fisheries, financial services, communications and information technology, logistics, aviation, and mining.
The portfolio’s assets increased to approximately OMR12.175 billion, thanks to profits exceeding OMR1.200 billion in 2023, yielding an investment return of 11.5%.
A significant portion of these profits, OMR800 million, bolstered the State’s general budget. Capital investment spending on portfolio projects rose to OMR2.1 billion, surpassing the target of OMR1.9 billion. Additionally, the portfolio companies completed six national projects with a combined investment value exceeding OMR4 billion.
Hisham bin Ahmed Al Sheedi, Director-General of the Economic Diversification Directorate at OIA, confirmed that the investments and projects within the ‘National Development Portfolio’ embody the OIA’s strategy and objectives, consistent with the “Oman 2040” vision.
These efforts aim to contribute to the growth and development of the Omani economy by promoting targeted economic sectors through large projects across various governorates, which have both economic and social impacts.
The strategy also focuses on diversifying the national economy, attracting foreign investments, increasing the private sector’s contribution to the economy, enhancing local added value, localising national expertise and competencies, and creating employment opportunities.
Several projects launched
In the realm of economic diversification, several OIA companies announced and inaugurated a series of projects.
Notable among them is the OQ ammonia factory in Dhofar Governorate, with a production capacity of 1,000 metric tons per day, exporting its products to global markets such as Turkiye, Morocco, and India.
Other significant projects include the operation of the container terminal in Duqm Port, the completion of the first phase of the electricity connection project, and the signing of a tender for engineering, procurement, construction, and management of the copper and gold project in Yanqul.
Additionally, projects in municipal solid waste management in Barka, Al Khabourah, and Al Suwaiq, the expansion of the Quriyat fish farming farm to a capacity of 5,000 tons annually, the start of harvesting operations at the Khuwaimah fish farming farm, the launch of the first Omani tuna fishing ship (Akila), and the Oman Adventure Centre project in Musandam have been completed.
The portfolio also supports regional projects such as developing the Al Mughsail Beach waterfront, Hamrir view, Wadi Darbat, Ain Jarziz Park, Atin Park, and the tourist services building in Shinas.
Efforts to attract foreign investments continued robustly, with foreign direct investments exceeding OMR1 billion across free and economic zones.
In the Salalah Free Zone, usufruct agreements worth OMR727.5 million were signed with foreign investors.
Agreements in the Sohar Free Zone and Khazaen Economic City were signed for projects worth OMR135.8 million and OMR56.6 million, respectively.
Additionally, work is ongoing to attract investment opportunities for shrimp farming projects with a global company, aiming for a strategic partnership valued at US$1.6 billion.
Support to SMEs
In supporting small and medium enterprises (SMEs), the OIA allocated a portion of its purchases and tenders to these businesses. The OQ Group’s spending on SMEs amounted to approximately US$245.4 million, while SMEs received OMR2.9 million from the Minerals Development Oman.
The Asyad Group awarded contracts and purchase orders totaling over OMR68 million to more than 496 SMEs and 797 local companies.
Oman LNG Company signed binding clauses to export 10.4 million metric tonnes of liquefied natural gas annually after 2024, enhancing the Sultanate’s reputation and reliability in this vital sector.
The Minerals Development Oman announced new discoveries of 4.8 million tonnes of copper ore, 163,000 tonnes of chromium ore, 111 million tonnes of soft silica, 98 million tonnes of hard silica, and 401 million tonnes of dolomite.
The Omani Food Investment Holding Company “Nitaj” expanded contract farming in the Al Murooj Dairy Project, began exporting camel milk to Saudi Arabia, and introduced the Oman Palm Development Company’s products to eight new markets, including Russia, Peru, Iraq, Libya, Egypt, Iran, Qatar, and the UAE.
Strengthening investment partnerships with the private sector and local and external investors, the ‘ITHCA’ Group and its subsidiaries expanded their local investments.
Notably, the American company GSME, a leader in semiconductor design, expanded its business in Oman by opening a technical centre.
