OIA emphasizes support for state general budget and debt reduction

Muscat: The Oman Investment Authority (OIA) has made a significant contribution to the country’s general budget and has effectively managed the corporate debt of its subsidiaries. In 2023, OIA contributed OMR800 million to the general budget, bringing its total contribution to over OMR6 billion since 2016. This funding underscores OIA’s commitment to supporting the country’s fiscal health and economic stability.

The Authority has also made significant progress in reducing its debt. Over the past year, OIA achieved a significant debt reduction of 24%, amounting to SAR 2.4 billion. This reduction is part of a broader strategy to enhance financial sustainability. In addition, OIA prepaid SAR 300 million of debt in 2023, further strengthening its financial position. Since 2020, the debt of OIA subsidiaries has been reduced from SAR 10.135 billion to SAR 7.681 billion in 2023, reflecting continued efforts to streamline and consolidate financial obligations.

The OIA post highlighted the agency’s ongoing commitment to financial prudence, noting that “as it continues its journey towards financial sustainability, #OIA has reduced its companies’ debt by 24% and increased its contribution to the state’s general budget to more than 6 billion riyals from 2016 to 2023.”

Sultan al Habsi, Minister of Finance and Chairman of the Board of Directors of the OIA, praised the government’s efforts to mitigate the negative impact of global economic challenges through various programs and reforms. He noted that despite these challenges, the Omani economy has performed strongly, with oil prices exceeding the forecasts in the state’s general budget. The recovery of the non-oil sector from the COVID-19 pandemic, coupled with increased foreign investment and reduced government debt, highlights the resilience and strategic direction of Oman’s economic policies.

According to an assessment by the National Center for Statistics and Information (NCSI), OIA’s National Development Fund (NDF) made a significant contribution to the country’s gross domestic product (GDP), reaching 6.2 billion riyals, or 14.4%, in 2022, compared to 4.46 billion riyals in 2021. In addition, investment spending by OIA companies in the local sector totaled 2.1 billion riyals, up 8.4%, exceeding the annual target of 1.9 billion riyals.