Future Fund Aligns with Oman's Ambition for Clean Energy

In a significant move to bolster SME financing, Future Fund Oman (FFO) launched a lending portfolio in collaboration with Beehive, a regional digital SME lending platform. This initiative provides loans within two weeks of application and offers flexible repayment plans to meet the strong demand for working capital among entrepreneurs.

The fund is Oman's first dedicated energy transition fund, aiming to accelerate investment in clean molecules, energy storage, e-fuels, smart mobility, renewables, and green data centres, aligning with Oman's ambition to become a clean energy hub and its commitment to economic diversification, attracting foreign investment, fostering innovation, and creating job opportunities.

Future Fund Oman, a significant initiative by the Oman Investment Authority (OIA), is poised to substantially boost Small and Medium Enterprises (SMEs) in Oman through various strategic measures. Launched with a capital of RO 2 billion (US$5.2 billion), the fund aims to accelerate access to capital, foster entrepreneurship, and contribute to the nation's economic diversification goals outlined in Vision 2040.

A key component of the fund’s strategy is its newly launched ‘quick’ loan scheme for SMEs. This programme promises to process and release capital within two weeks of application, addressing a critical need for rapid financing among small businesses.

The scheme also offers flexible repayment terms and simplified lending procedures, making it more accessible to a wider range of SMEs and startups. Beyond direct lending, the fund is committed to allocating 10 per cent of its capital specifically for SMEs, particularly those that are innovation-driven and technology-based.

This strategic allocation aims to enhance access to non-traditional financing, which is crucial for fostering innovation and supporting emerging companies. The fund's broader mandate includes attracting foreign direct investment (FDI).

Future Fund Oman has demonstrated positive performance during its first year of operations, having approved 44 projects with a total project value of approximately RO 1.2 billion (US$3.1 billion). Its contribution to these projects amounted to RO 333 million (~US$866 million), while foreign capital contributions reached RO 885 million (US$2.3 billion). This reflects growing international confidence in Oman’s investment environment.

With the recent legal and regulatory improvements in Oman aimed at attracting foreign investment and diversifying income sources, these reforms, which include the introduction of a new law allowing 100 per cent foreign ownership in most sectors and the launch of the “Invest in Oman” platform as a unified digital gateway to streamline licensing procedures, will help boost business in Oman.

Other initiatives include the implementation of the privatisation law, which enabled transferring government assets to the private sector and international investors through IPOs. As a result of these improvements and OIA’s efforts, Future Fund Oman has been able to contribute significantly to the national economy.

Projects approved by FFO in 2024 alone are anticipated to create over 1,600 direct jobs, diversify the economy to reduce reliance on oil and gas, empower entrepreneurial ventures, and foster innovation.

These objectives align with the pillars of Oman Vision 2040, which aims to build a productive and diversified economy led by the private sector, support sustainable development through clean energy and green industries, create jobs, develop local talent and transfer knowledge to Omani workers while strengthening local and international partnerships in renewable energy and advanced technologies.

Crucially, Future Fund Oman is playing a pivotal role in advancing Oman's energy transition and Net-Zero 2050 goals. This initiative positions Oman as a frontrunner in global energy transition and a strategic hub for clean energy and advanced manufacturing, attracting future-focused global capital.