Arab News

RIYADH: Saudi Arabia’s trade and economic relationship with Oman is set to be enhanced after leading institutions from the two countries signed a memorandum of understanding.

The Kingdom’s Public Investment Fund inked the deal with the Oman Investment Authority in a move that will help PIF and its portfolio companies unlock investment opportunities in the Gulf nation. 

Saudi Arabia’s economic relationship with Oman has always been strong, and in 2022 trade between both nations surged by 123 percent compared to the previous year to reach $7.01 billion.

“The MoU 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 Co., a PIF-wholly owned company, which intends to invest up to $5billion in promising sectors in Oman,” the fund said in the press release. 

The press statement added that SOIC recently closed its first deal in Oman as a 20 percent anchor investor in Abraj Energy Services’ initial public offering.

“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,” said Yazeed Al-Humied, deputy governor and head of Middle East and North Africa Investments at the fund. 

He added that the MoU represents a significant step which will strengthen the relationship between PIF and OIA, ultimately helping the Kingdom’s sovereign wealth fund to expand its investment footprint in the Omani economy. 

“This MoU builds on our existing relationship with PIF and enables greater cooperation, driving economic diversification in Saudi Arabia and Oman,” said Mulham bin Basheer Al-Jarf, deputy president for investment at OIA. 

He added that the MoU is in line with the efforts of the OIA to increase foreign direct investments in accordance with the goals outlined in Oman Vision 2040. 

With Vision 2040, Oman aims to diversify its economy by catalyzing growth in sectors like tourism, logistics and manufacturing as well as fisheries and mining, along with increasing foreign investments in the sultanate. 

Al-Jarf added that the MoU will also strengthen the partnership between private sector companies operating in Oman and Saudi Arabia. 

PIF has been making strategic investments in several countries across the globe, in line with the economic diversification strategy outlined in the Kingdom’s Vision 2030. 

In January, data released by the Sovereign Wealth Fund Institute revealed that PIF has maintained the sixth spot in the list of top sovereign wealth funds worldwide, with assets worth $607.42 billion. 

Currently, the sovereign fund owns 73 companies in 10 different sectors, and it has already created more than 500,000 direct and indirect jobs.