The Oman Investment Fund is a

sovereign wealth fund A sovereign wealth fund (SWF), sovereign investment fund, or social wealth fund is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such ...

, established in 2006 in accordance with a royal decree of His Majesty the Sultan of

Oman Oman ( ; ar, عُمَان ' ), officially the Sultanate of Oman ( ar, سلْطنةُ عُمان ), is an Arabian country located in southwestern Asia. It is situated on the southeastern coast of the Arabian Peninsula, and spans the mouth of t ...

. The fund makes medium to long-term

investments Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing is ...

, globally and domestically, to diversify the government of Oman's asset base and create a pool of sustainable cash flow. Currently, the fund's assets under management are estimated at approximately US$18 billion.

History

The Oman Investment Fund was established in 2006 and was the successor to the Oman Oil Fund, which was formed in 1993 to invest in the domestic

oil industry The petroleum industry, also known as the oil industry or the oil patch, includes the global processes of exploration, extraction, refining, transportation (often by oil tankers and pipelines), and marketing of petroleum products. The larges ...

. The fund received an additional US$1 billion from the Omani government expanding its assets under management.

Strategy and objectives

The fund is legally prohibited from publicly disclosing information about its

investment strategy In finance, an investment strategy is a set of rules, behaviors or procedures, designed to guide an investor's selection of an investment portfolio. Individuals have different profit objectives, and their individual skills make different tactics an ...

asset allocation Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investment tim ...

. It is therefore only possible to estimate its funds under management, and a full list of its investments is not publicly available. The fund has a long-term investment horizon, and its mandate includes seeking above-average returns. Its primary objective upon its establishment was to generate economic growth in the

Sultanate of Oman Oman ( ; ar, عُمَان ' ), officially the Sultanate of Oman ( ar, سلْطنةُ عُمان ), is an Arabian country located in southwestern Asia. It is situated on the southeastern coast of the Arabian Peninsula, and spans the mouth of t ...

, through direct investment in domestic companies, by assisting foreign companies to extend their investments and operations in Oman, or by facilitating knowledge and technological transfer to domestic entities. The fund has made investments in

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...

and

private equity In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a ty ...

. Other investment sectors in which it has historically invested include: *Travel and leisure *Media and entertainment *Industrial goods and services *Industrial transportation and engineering *Financial services *Utilities *Telecom infrastructure Given the Oman Investment Fund's imperative to generate above average-returns through long-term investments, it has shown a particular interest in emerging industries within Oman, as well as markets with promising growth potential. It has shown a preference for high-growth emerging markets, such as India, where Oman has historical trading ties.

Governance

The fund's sole shareholder is the Government of the Sultanate of Oman. It is overseen by Financial Affairs and Energy Resources Council and the Ministry of Finance of Oman.

References

{{Reflist Companies of Oman Sovereign wealth funds