Global SWF Praises Oman Investment Authority's Economic Transformation

The Global SWF Foundation has lauded the Oman Investment Authority (OIA) for its effective strategy in revitalizing state-owned enterprises and bolstering the Omani economy. The foundation recognized the OIA's success in enhancing the performance of government companies, recycling state assets, and attracting crucial foreign capital and expertise to strategic sectors, all in alignment with the objectives of Oman Vision 2040.

According to Global SWF's latest report, the OIA's performance in 2025 demonstrates the efficacy of Oman's sovereign investment structure, particularly the consolidation of government companies under the OIA's management since 2020. The authority has prioritized improving the profitability and operational efficiency of these companies while ensuring the state retains ownership in key strategic sectors.

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The authority has emerged as a distinctive model among sovereign wealth funds by combining state-owned enterprise reform with investment promotion and economic development.

The foundation noted that the OIA has pioneered a distinctive model among sovereign wealth funds by merging state-owned enterprise reform with investment promotion and economic development. This integrated approach has allowed the OIA to reshape state ownership, generate employment opportunities, strengthen local supply chains, and attract international investors and expertise. The OIA has employed tools such as public offerings, direct sales, and strategic partnerships to instill greater operational discipline and redirect proceeds toward sectors with higher growth potential.

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OQ succeeded in reducing total debt by 48 percent, from OMR5 billion to OMR2.7 billion, while releasing OMR2.2 billion in government guarantees.

A prime example cited by Global SWF is the transformation of OQ Group. After its transfer to the OIA in 2020, OQ faced considerable operational challenges and financial strain. Through a comprehensive transformation program focused on strategic updates, business unit integration, capital restructuring, and asset recycling, OQ significantly reduced its total debt by 48 percent, from OMR5 billion to OMR2.7 billion. The group also improved its net debt-to-operating-profit ratio and secured investment-grade credit ratings from Fitch and Standard & Poor's.

The report also pointed to the successful turnaround of OQ Refineries and Petrochemicals Company, which achieved profitability for the first time in over two decades under the OIA's oversight. This turnaround was part of a broader strategic transformation program extending to 2030, addressing previous operational inefficiencies and market volatility.

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The report also highlighted the turnaround of OQ Refineries and Petrochemicals Company, which achieved its first profits since its establishment more than two decades ago.