Saudi Arabia’s PIF to Invest $5 Billion in Oman

The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, has signed a Memorandum of Understanding (MoU) with the Oman Investment Authority (OIA), to invest $5 billion through its newly-established Saudi Omani Investment Company (SOIC) in promising sectors in Oman.

The MoU is intended to expand cooperation and investment between the two entities, enabling new and promising investments in Oman’s rapidly growing economy. It also provides benefits and incentives for PIF and its portfolio companies, which intend to unlock investment opportunities in Oman.

Agreement represents a significant milestone in PIF’s and OIA’s strategic partnership as it aims to expand PIF’s portfolio in Oman, building on the recent establishment of the, a PIF-wholly owned company.

SOIC recently closed its first investment in Oman as a 20% anchor investor in Abraj Energy Services’ IPO and continues to seek other investment opportunities with OIA and its companies.

Through this MoU, PIF aims to streamline its investment activities in Oman across a wide range of asset classes and target industries. The OIA is expected to explore attractive investment opportunities for cooperation and partnership with PIF, in addition to providing all aspects of support required in the Omani market.

MoU Vital

Yazeed A Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said that this MoU is an important step in further strengthening the relationship between PIF and OIA to expand investment and cooperation in the fast-growing Omani economy.

“PIF aims to create long-term strategic partnerships in the region that support the creation of sustainable returns, deliver value to local economies, maximize PIF’s assets, and diversify the Saudi Arabian economy in line with Vision 2030,” he added.

Mulhem Basheer Al Jarf, Deputy President for Investment at OIA, said that the agreement builds on the existing OIA-PIF relationship and enables greater cooperation, driving economic diversification in Saudi Arabia and Oman.

“It aims to facilitate partnership opportunities for the private sector in both countries, in alignment with OIA’s efforts to attract FDI to the Sultanate of Oman through Oman’s 2040 vision,” he added.

As a key government entity responsible for strategic investments, OIA plays a leading role in Oman’s efforts to diversify the economy, foster sustainable development, and create a prosperous future for its people.

By attracting capital, championing innovation, and implementing strategic initiatives, OIA plays an instrumental role in advancing Oman’s economic growth, elevating its global competitiveness, and driving the nation toward a prosperous and resilient future.​

Investments in MENA

The PIF said in November last year that it will establish five regional investment firms in Jordan, Bahrain, Sudan, Iraq and Oman and these companies plan to invest up to $24 billion in sectors including infrastructure, mining, healthcare, food and agriculture, and tech, as per the sovereign wealth.

The PIF has already set up a similar company in Egypt – Saudi Egyptian Investment Company – which has acquired minority stakes in four Egyptian companies last year.

These six investment companies will help boost the Saudi private sector, but also that of all six countries involved. 

In addition to this, the investment firms will further enable the PIF to develop strategic partnerships, achieve sustainable returns, grow its Assets Under Management, and diversify the Kingdom’s revenue sources in line with the Saudi Vision 2030.