Oman Investment Authority earns 10.3% in annual returns from 40 Countries

The average annual returns from the investments made in 40 countries was more than 10% till December 2021, the state-backed Oman Investment Authority (OIA) said in its first annual report, which was released on Wednesday.

The OIA was established by the government in June 2020 and despite the challenges witnessed during the first 18 months covered by the report, development efforts have remained on track with a clear focus on goals, Moan’s Minister of Finance and OIA Chairman Sultan Al-Habsi said in the report.

Many opportunities have emerged and were leveraged to the maximum and everybody was 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, the Minister noted.

“OIA’s key achievements from June 2020 to December 2021 are represented by an average annual return of 10.3%. 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,” OIA’s Executive President Abdulsalam Al Murshidi said.

New Investments

The new investments in the 40 countries included those in SpaceX, a US company specialising in space exploration technologies, setting up an investment fund with China Merchant Bank International (CMBI) with a focus on future technologies, 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 said.

The report also detailed the profitable returns the Authority made from some of the exits including its complete exit from the US-based Cognate BioServices, Turkey’s Migros Stores, UAE-based RAK Ceramics, part withdrawal from US IT firm First Data.

Profitable Returns

The Return on Investments were 3.15 times with an internal rate of return of 42% from Cognate BioServices, 1.11 times with an IRR of 1.1% from Migros Stores, an IRR of 1.6% and 1.13 times RoI from RAK Ceramics. The partial exit from First Data resulted in 1.34 times returns on investment and an IRR of 2.6%, the report said.

With regard to investments in Vietnam, the Vietnam-Oman Investment (VOI) entered a new agreement with CMES company, a significant player in the renewable energy market, developing rooftop solar power systems.

The Oman Brunei Investment Company succeeded in increasing its capital to $200 million by exploring available opportunities and expanding its existing investments in Brunei. The Company has also 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.

Besides, the OIA invested in Symborg through Oman Spain Fund for Private Equity. Symborg is an international firm engaging in agricultural biotechnology.

The Oman India Joint Investment Fund fully exited from two investments, achieving an internal annual return of 47% and 18%, respectively, and partially exited from one investment, achieving an internal annual return of 25%.

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.

It also highlighted 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.