Finance & Capital Market

Oman Investment Authority records $7.8bn annual profits

MUSCAT
Oman Investment Authority records $7.8bn annual profits

Oman Investment Authority, the sultanate’s sovereign wealth fund, has reported its strongest annual performance to date, recording approximately $7.8 billion in profits and a 14.6% return on investment in 2025, placing it among the world’s top-performing sovereign investors.

According to SWF Global, OIA ranked third globally among sovereign wealth funds for return on investment and first globally for public market returns in 2025. 

The performance gives Oman a stronger position in the global sovereign investment landscape, where Gulf funds are playing an increasingly influential role across private equity, infrastructure, energy transition, logistics, technology and strategic industries.

The sultanate’s sovereign wealth fund assets for the 12-month period surged to hit $60 billion by the end of 2025. 

On a cumulative basis, every dollar equivalent held by the Authority in 2020 had grown by approximately 73% by the end of 2025, reflecting value creation across its portfolio, it added.

While the world’s largest sovereign wealth funds are often judged by scale, OIA’s 2025 results place it in a different category: a sovereign investor gaining attention for performance, governance and public market returns.

The Authority also exceeded its approved annual performance indicators by 105%, supported by disciplined asset management, stronger public market returns and the restructuring of state-owned assets into more commercially focused enterprises.

OIA’s 2025 performance comes as Oman seeks to sharpen its economic position beyond hydrocarbons and deepen its role in international capital flows. 

The sultanate’s sovereign wealth fund attracted $4.1 billion in foreign direct investment during the year, reinforcing its role as a gateway for global capital into Oman’s priority sectors.

A major highlight of FY 2025 is portfolio transformation. Since assuming ownership of a number of state-owned companies in 2020, OIA has worked to strengthen operational and financial performance across its portfolio, improve profitability and raise efficiency. 

These restructuring initiatives helped several portfolio companies return to profitability, improved asset quality and supported the Authority’s divestment programme, it stated. 

OIA also settled approximately $2.4 billion in debt across its subsidiaries, further strengthening balance sheets and supporting the shift toward more commercially driven models. 

Launched in 2022 to recycle capital and maximise returns, the divestment programme had completed 24 divestments by the end of 2025, generating more than $7.3 billion for reinvestment into new opportunities.

Today, OIA’s portfolio now spans more than 52 countries, reflecting a strategy designed to balance domestic exposure with global diversification. Nearly two-thirds of its investments are held in Oman, while the remaining portfolio is allocated across major international markets, including 19% in North America, 9% in Europe, 4% in Asia-Pacific and 7% in other global markets.

OIA’s 2025 performance also reflects a broader strengthening of governance and transparency around Oman’s state-owned assets. Global institutions, including the World Bank, have recognised Oman’s progress in improving the management and oversight of state-owned enterprises, while OIA ranked third among sovereign wealth funds. 

For international investors, this strengthens the fund’s credibility as Oman seeks to attract long-term capital and deepen its role in global investment flows.

With record profits, leading performance in public markets and stronger governance credentials, the authority’s 2025 results point to a broader shift in Oman’s economic model: the use of sovereign capital to generate returns, attract foreign investment, restructure state assets and build a more internationally connected investment platform.-TradeArabia News Service