The National Development Portfolio, managed by the Oman Investment Authority (OIA), saw tremendous success in driving economic diversification efforts in 2023. The portfolio’s assets reached OMR12.175 billion, with profits exceeding OMR1.200 billion, resulting in an investment return of 11.5%. A significant portion of these profits, OMR800 million, went towards bolstering the State’s general budget, while capital investment spending on portfolio projects rose to OMR2.1 billion. Six national projects, with a combined investment value exceeding OMR4 billion, were completed during this period.
Hisham bin Ahmed Al Sheedi, Director-General of the Economic Diversification Directorate at OIA, affirmed that the investments and projects within the National Development Portfolio align with the Oman Investment Authority’s strategy and objectives in line 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, with 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, localizing national expertise and competencies, and creating employment opportunities.
Several projects were launched in various sectors to drive economic diversification. Notable among them is the OQ ammonia factory in Dhofar Governorate, the operation of the container terminal in Duqm Port, and the electricity connection project’s first phase completion. Additionally, projects in municipal waste management, fish farming, tunafishing, and tourism were initiated, further boosting economic activities across different regions in Oman.
In terms of attracting foreign investments, efforts were robustly continued with foreign direct investments exceeding OMR1 billion across free and economic zones. Agreements worth millions were signed with foreign investors in Salalah Free Zone, Sohar Free Zone, and Khazaen Economic City. Collaboration with global companies for projects such as shrimp farming further emphasized Oman’s attractiveness for foreign investors and strategic partnerships.
Support for small and medium enterprises (SMEs) was also a key focus for the OIA, with allocation of purchases and tenders to SMEs across various projects. The OQ Group, Minerals Development Oman, Asyad Group, and Oman LNG Company all contributed to supporting SMEs with significant amounts of capital. New discoveries in the mineral resources sector and the expansion of agricultural projects also highlighted the OIA’s commitment to fostering economic growth and diversification in Oman.
Furthermore, strengthening investment partnerships with the private sector and local and external investors remained a priority for the OIA. The expansion of local investments by ITHCA Group and its subsidiaries, as well as the establishment of new partnerships with companies like GSME, underscored the OIA’s efforts to drive economic development and attract foreign investments in Oman. Overall, the success of the National Development Portfolio in 2023 signals a positive trajectory for Oman’s economic diversification and growth in the years to come.
