Oman reveals a new five-year divestment strategy

Oman : The Oman Investment Authority (OIA) reveals a new five-year divestment strategy, focusing on launching initial public offerings (IPOs) in crucial sectors. The plan for 2024-2028 will see the introduction of IPOs in the energy, services, and logistics sectors, according to a recent announcement on the social platform X.

Alongside the IPOs, the sovereign wealth fund will pursue private placements to attract strategic investors for the agriculture, aquaculture, and mining sectors. This week, Omani energy firm OQ revealed its intention to sell up to 25 per cent of its exploration and production division, OQEP, through an IPO.

Initiated in 2022, the divestment strategy aims to meet national goals such as attracting foreign investment, enhancing the Muscat Stock Exchange, reducing debt, and reinvesting the proceeds from divested assets. Over 2022 and 2023, this strategy raised over $2.6 billion (Dh9.5 billion) through 12 divestments, including three IPOs and nine private placements across various sectors. The OIA is currently revising its divestment plan for 2025-2029 and is forming steering committees within companies to ensure a smooth divestment process.