Oman Investment Authority (OIA), the Sultanate’s sovereign wealth fund, has unveiled plans for the Initial Public Offering (IPO) of 25% of OQ Exploration & Production, a subsidiary of the state-owned OQ Group. The offering is set to make history as the largest-ever IPO on the Muscat Stock Exchange.
Of the shares available, 60% will be allocated to institutional investors, both domestic and international, while the remaining 40% will be open to individual investors. The IPO is Shariah-compliant and forms part of OIA’s broader strategy to divest state-owned assets and stimulate Oman’s economy.
Since 2022, OIA has raised over USD 2.5 billion through its divestment programme, which has involved 12 investments, including nine private placements and three IPOs. These earlier public offerings included The Pearl REIF, Abraj Energy Services, and OQ Gas Networks, each of which saw significant oversubscription, signalling strong investor interest and confidence in Oman’s economy.
OIA’s strategy revolves around transforming select subsidiaries into public joint-stock companies or selling equity directly to strategic investors. This approach aims to invigorate the Muscat Stock Exchange, encourage private sector growth, and align Oman with global market standards. Through such measures, OIA hopes to boost transparency, governance, and the adoption of international best practices.
The divestment policy also plays a crucial role in Oman’s economic diversification efforts, creating new opportunities for local and foreign investors. The listing of government-owned assets on the Muscat Stock Exchange is designed to drive the nation towards emerging market status while generating profitable investment opportunities for citizens and foreign investors alike.
Mirroring Oman’s Vision 2040, this policy underscores the nation’s ambition to enhance economic diversification, attract foreign direct investment, and foster private-sector partnerships. Vision 2040 aims to reduce Oman’s dependence on oil and gas and pave the way for a more sustainable, balanced economy.
Looking ahead, OIA has mapped out a five-year divestment plan covering 2025 to 2029. The plan includes around 30 investments spanning a range of sectors, such as energy, logistics, utilities, and infrastructure, which will be sold either through public offerings or direct sales to strategic investors. Other sectors to be targeted include agriculture, aquaculture, and mining.
To ensure efficient management of this initiative, OIA has established steering committees within its subsidiaries. These committees will oversee the smooth execution of the divestment strategy, which is designed to respond to evolving global economic conditions and solidify Oman’s position on the international stage.
OIA, with investments in more than 30 countries, is determined to keep Oman at the forefront of global economic developments. Through forward-thinking economic policies, the authority aims to boost the national economy and elevate the country’s competitiveness on the global stage.
This IPO is seen as a milestone in Oman’s efforts to modernise its economy and secure its place as a key player in the global marketplace.
