Saturday 05 / October / 2024
Muscat: Saudi Arabia’s Public Investment Fund (PIF) said that it has signed a Memorandum of Understanding (MoU) with the Oman Investment Authority (OIA) and plans investments worth $5bn in Oman.
The MoU signed is intended to expand cooperation and investment between the two entities, enabling new and promising investments in Oman’s rapidly growing economy.
The PIF also seeks to boost its investments in Oman, one of the fastest-growing economies in the Middle East and North Africa region, by approaching diverse asset classes within numerous targeted sectors.
The MoU signing took place in Riyadh and was attended by Abdulsalam Al Murshidi, the President of OIA. Yasir Al Rumayyan, Governor of PIF, HH Sayyed Faisal Al Said, Ambassador of Oman to Saudi Arabia, and Ibtisam Al Farooji, Undersecretary for Investment Promotion at the Ministry of Commerce, Industry, and Investment Promotion.
Based on this MoU, OIA will explore investment opportunities and provide support to PIF.
The MoU follows the establishment of the Saudi Omani Investment Company, to allocate $5 billion for investments across various promising sectors in Oman.
This is in addition to expanding the PIF’s investment portfolio in the Omani market, which will stimulate investments in Oman due to new international strategic economic partnerships.
Abdulsalam bin Muhammad Al Murshidi, Chairman of OIA, said: “The memorandum confirms the commitment of Oman and Saudi Arabia of strengthening partnerships, and an endeavour to enhance economic integration, achieve sustainable development and advance economic investments in the region.”
Omani economy is growing
Commenting on the MoU, Mulham Al Jarf, Deputy President for Investments at OIA, said, “The Omani economy is growing significantly as a leading destination for international investments in the MENA region. This MoU is consistent with OIA’s efforts and mandates to attract foreign direct investments in line with Oman Vision 2040’s national goals.”
“The partnership is founded upon our solid relationships with PIF, and it is expected to pave the way for more cooperation and the creation of varied partnerships to accelerate Oman and Saudi Arabia’s economic diversification.”
“Moreover, it opens the door for many private-sector partnerships between the two countries. It boosts the development and transformative trends in the two nations, eventually resulting in growth, sustainability, and prosperity,” he further added. >A4
The conclusion of the MoU reflects the deep-rooted Omani-Saudi relationships and the next level of evolution of bilateral cooperation under the two nation’s wise leadership.
This is a realisation of a strategic partnership on the investment and economic fronts established on the solid historical, cultural, economic, and political ties between both nations.
The MoU provides benefits and incentives for PIF and its portfolio companies, which intend to unlock investment opportunities in Oman.
The MoU also 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 Saudi Omani Investment Company (SOIC), a PIF-wholly owned company, which intends to invest up to $5 billion in promising sectors in Oman.
The Saudi Omani Investment Company (SOIC), a PIF-wholly owned company, recently closed its first investment in Oman as a 20 percent 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.Yazeed A. Al-Humied, Deputy Governor and Head of Mena Investments at PIF, said: “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, maximise PIF’s assets, and diversify the Saudi Arabian economy in line with Vision 2030.”
Mulhem Basheer Al Jarf, Deputy President for Investment at OIA, said: “This MoU builds on our existing relationship with PIF 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.”
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.
