The Future Fund Oman (FFO), a cornerstone of the Sultanate’s economic diversification strategy, has announced the approval of its inaugural batch of projects, committing a significant $2.5 billion (OMR 960 million) towards vital sectors. This strategic allocation underscores Oman’s unwavering commitment to fostering sustainable economic growth, empowering the private sector, and creating robust employment opportunities in alignment with Vision 2040.
By the Numbers
- $2.5 billion: Total value of approved projects in the first batch.
- 8: Number of strategic sectors targeted for investment.
- 10%: Targeted annual return for the Future Fund Oman.
- $5.2 billion: The Fund’s initial capital, established in 2023.
- $5.2 billion: Targeted total investment attraction by FFO over the next five years.
- 14,000: Projected job opportunities to be created by the fund’s investments within five years.
Strategic Approvals Driving Economic Diversification
The approved projects span eight critical sectors, meticulously chosen for their potential to drive Oman’s non-oil economic expansion and enhance its global competitiveness. These include Information and Communications Technology (ICT), tourism, manufacturing, logistics, mining, fisheries, renewable energy, and green hydrogen. This broad diversification reflects FFO’s mandate to build a resilient and innovative economy, reducing reliance on traditional hydrocarbon revenues and leveraging Oman’s strategic geographical position and natural resources.
Empowering Private Sector and Local Content
A central tenet of FFO’s investment philosophy is the active involvement and empowerment of the private sector. The fund is committed to maximizing local content, ensuring that investments translate directly into value creation within Oman. This includes supporting local businesses, enhancing Omani capabilities, and developing robust supply chains. By fostering a dynamic ecosystem where local enterprises can thrive, FFO aims to strengthen the national economy from within, generating high-quality jobs for Omani youth and stimulating entrepreneurial spirit.
A Fund with a Clear Mandate
Established by Royal Decree No. 19/2023, the Future Fund Oman commenced operations with a substantial capital of OMR 2 billion ($5.2 billion). Its governance structure is designed for efficiency and strategic oversight, comprising a Board of Directors, an Executive Committee, and a dedicated investment team. This structure ensures transparent decision-making and rigorous evaluation of investment opportunities, aligning each project with the fund’s overarching objectives of achieving a 10% annual return and contributing significantly to Oman’s gross domestic product.
About the Future Fund Oman
The Future Fund Oman is a sovereign wealth fund established to play a pivotal role in realizing the ambitions of Oman Vision 2040. Its primary objectives include accelerating economic diversification, attracting foreign and local investments, supporting small and medium-sized enterprises (SMEs), and creating sustainable job opportunities for Omanis. By strategically deploying capital into high-growth, non-oil sectors, FFO aims to transform Oman into a leading investment destination and a hub for innovation and sustainable development.
Looking Ahead
Over the next five years, the Future Fund Oman projects to attract an additional $5.2 billion in local and foreign investments, further amplifying its impact on the Omani economy. These investments are anticipated to create approximately 14,000 direct and indirect job opportunities, underscoring the fund’s commitment to human capital development and national prosperity. With this inaugural batch of approvals, FFO sets a strong precedent for future strategic investments, reaffirming Oman’s trajectory towards a diversified, knowledge-based economy.
Source: Zawya
