Oman’s sovereign wealth fund, the Oman Investment Authority (OIA), has announced the largest Initial Public Offering (IPO) in the country’s history. This significant step marks a key element of OIA’s broader divestment strategy, a plan designed to revitalize the Omani economy and propel the Muscat Stock Exchange to new heights. The IPO, slated to take place on the Muscat Stock Exchange, will involve the offering of 25% of shares in OQ Exploration & Production, a subsidiary of OQ Group, which is fully owned by OIA. This move is expected to be a game-changer for the Omani market, driving economic growth and attracting foreign investments.
The IPO, which is Shariah compliant, will see 60% of the shares allocated to institutional investors in Oman and internationally, while 40% will be made available to individual investors. This strategic allocation aims to maximize participation and foster a robust and diverse investor base. OIA’s divestment strategy, which was first announced in mid-2022, has already yielded impressive results. Over the past two years, OIA has successfully divested from 12 investments, generating over USD 2.5 billion. These divestitures have included nine private placements across various sectors and three IPOs on the Muscat Stock Exchange, demonstrating the strong investor confidence in Oman’s economic potential.
The overarching goal of OIA’s divestment strategy is to stimulate the Omani economy and elevate the Muscat Stock Exchange to emerging market status. By listing government-owned assets publicly, OIA aims to enhance governance, transparency, and the adoption of global best practices. This strategy is instrumental in Oman’s ongoing economic diversification efforts, empowering the private sector to play a leading role in driving the economy forward.
Furthermore, this initiative creates lucrative investment opportunities for citizens and residents, while simultaneously attracting high-quality foreign investments. In line with its forward-looking approach to economic development, OIA has updated its divestment strategy for the next five years, covering the period from 2025 to 2029. This updated strategy encompasses approximately 30 investments that will be divested through public offerings in sectors such as energy, logistics, utilities, and infrastructure, or through direct sales to strategic investors in sectors including aquaculture, agriculture, and mining.
With investments spanning over 30 countries, OIA remains at the forefront of the rapidly evolving global economic landscape. Through its strategic initiatives, OIA is bolstering the national economy, enhancing Oman’s global competitiveness, and creating a more prosperous future for the Sultanate. This forward-thinking approach aligns perfectly with Oman’s Vision 2040, a roadmap for enhancing economic diversification, attracting foreign direct investments, and fostering partnerships with local enterprises to drive sustainable economic growth.
The OIA’s commitment to transparency and stakeholder engagement is reflected in its proactive communication efforts. For further details, please contact Fahad Al Toubi, Senior Specialist-Media Relations, at (+968) 24745781 or email Fahad.AlToubi@oia.gov.om. The official website for the OIA is www.oia.gov.om.
