The Oman Investment Authority is preparing for an ambitious investment plan that may include several listings on the stock exchange over the next five years, as the Gulf state seeks to achieve emerging market status.
Targeted Assets
Thuraya Ahmed Al-Balushi, the Director of the Sovereign Wealth Fund for Economic Diversification, states that there are about 30 assets in the execution phase, with priority given to initial public offerings. These prominent deals include those in the energy and logistics sectors, which are expected to exceed the OQ Gas Networks SAOG listing this year, according to Bloomberg News.
Enhancing Private Sector Participation
The Oman Investment Authority aims to enhance private sector participation and deepen the financial market, paving the way for emerging market classification from MSCI, according to Al-Balushi, who also serves as a board member of the state-owned energy company OQ SAOC, in an interview.
Oman and Bahrain
Oman and Bahrain are the only two countries in the six-member Gulf Cooperation Council that are not classified as emerging markets by MSCI Inc.
Oman Wealth Fund
The Omani fund oversees about $47 billion in assets across various sectors such as real estate, technology, and commodities in more than 50 countries, according to its 2022 annual report. The fund’s subsidiaries include OQ Group, Oman Liquefied Natural Gas Company, Oman Minerals Development Company, and Oman Airports.
Future Listings
According to Al-Balushi, the fund is currently seeking to list up to five large companies by 2026. The listing of OQ Gas Networks last October, which raised $749 million, was the largest since the listing of telecom company Nawras in 2010, now known as Ooredoo Oman.
Muscats Stock Exchange
The Muscat Stock Exchange is among the smallest exchanges in the region, with a market capitalization of over $23 billion, according to aggregated data from Bloomberg. Last year, the Gulf state enlisted advisors for its stock exchange as part of efforts to attract more listed companies amid a resurgence of public offerings in Riyadh, Abu Dhabi, and Dubai.
Credit Rating Upgrade
Earlier this month, the country’s credit rating was upgraded by Moody’s Investors Service to Ba1, one notch below investment grade, thanks to oil revenues that helped the OPEC+ member improve its debt repayment capabilities.
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