finance & economy

OIA announces plan to exit from six investments

June 16, 2022

Muscat – Oman Investment Authority (OIA) announced the commencement of the initial stage of the exit plan for six of its national investments in energy, manufacturing, tourism, and logistics sectors.

The programme will start with preparing three of OIA’s assets to be considered for initial public offerings in Muscat Stock Exchange (MSX), stated the authority.

Other projects considered for immediate divestment include a manufacturing project owned by OIA directly and two OQ projects. ‘Additionally, OIA will partially and fully exit two Asyad projects and fully exit several Omran hotels and resorts,’ stated OIA.

Nasser al Harthy, OIA’s acting deputy president for operations, said, “Since its inception, OIA has taken it upon itself to empower and enable the private sector and to avoid competing with it to the best of its ability. On that note, OIA conducted workshops and programmes to devise an exit plan within a five-year timeframe between 2021 and 2025 to exit more than 30 assets.”

The plan, OIA added, reflects its role in implementing the national priorities of Oman Vision 2040, aiming to achieve economic diversification, decrease dependence on oil, and realise the government’s approach to empowering the private sector in leading the national economy and enhancing its role in driving national development.

Each company will present its exit plan for the next five years. After getting approval from OIA, the company will present a detailed plan which includes, exit procedures, main stages planned, and any advisory appointments to complete the exit.

Harthy informed that exiting is a gradual international practice, which is beneficial to multiple parties, and leads to the main objective which is handing over economic ropes to the private sector.

Through the exit plan, OIA aims to gnerate revenues for the state’s general budget, utilise the acquired revenues in financing capital expenditure and operational expenses, invest in promising sectors after handing over current investments to the private sector, recycle capital from mature assets to investments that are still in their early stages, create partnerships with private investors who include local and international investors, and expand MSX through initial and secondary public offerings, stated OIA.

OIA’s Rawabet project, launched to maintain a link between OIA and its companies, came up with several policies including the ‘Exit’ policy. ‘This policy aims to create a framework adhering to values of transparency, fairness, and utmost integrity. The policy seeks to guide companies in developing and implementing exit policies. The board of directors of each OIA company presents an initial 5-year exit plan to OIA for its approval, then updates the plan annually.’

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