Overview
The Oman Future Fund was launched in 2024 with an initial capitalisation of OMR 2 billion (approximately $5.2 billion) — one of the most significant announcements in Vision 2040’s fiscal management framework. The fund represents a strategic deployment of Oman’s improved fiscal position (three consecutive surpluses) into long-term economic development investment.
Mandate
The Oman Future Fund is distinct from the Oman Investment Authority (OIA) in its mandate:
- OIA: Long-term wealth preservation and portfolio diversification — the classic sovereign wealth fund role
- Oman Future Fund: Strategic investment in Vision 2040 priority sectors — economic development finance
The Future Fund’s investments are expected to focus on sectors where Oman has identified strategic diversification opportunities: green hydrogen, digital economy, advanced manufacturing, logistics infrastructure, and technology.
Governance
The Fund operates under government oversight — its governance structure and investment committee composition were being formalised at the time of the 2024/2025 Progress Report. Transparency and governance frameworks for the fund are expected to align with international sovereign fund standards.
Significance
The creation of the Oman Future Fund signals:
- Fiscal confidence: Oman’s government is sufficiently confident in the surplus trajectory to commit OMR 2 billion to long-term strategic investment
- Development orientation: Rather than simply paying down debt (also a priority), the government is channelling some surpluses into growth-oriented investments
- Institutional architecture: The creation of a separate vehicle for development investment suggests recognition that OIA’s mandate is better suited to financial returns than industrial policy investment
Context
The Future Fund concept draws on models from other Gulf states: Saudi Arabia’s PIF (Public Investment Fund), Qatar’s QIA, and Abu Dhabi’s Mubadala — all of which combine sovereign wealth preservation with strategic economic development investment. Oman’s OMR 2 billion fund is modest relative to these peers but represents a significant step in the same direction.