MUSCAT: Oman is considering taking equity stakes in logistics, shipping and tourism as its sovereign wealth fund seeks to diversify government income from crude.
Oman Investment Fund, which has holdings in Italy to Vietnam and is a shareholder of the Dubai Mercantile Exchange, wants to invest in companies in Oman and abroad that are mainly outside the oil industry, Dr Fabio Scacciavillani, chief economist at the state-owned fund, said in an interview in Dubai on Wednesday.
The fund is focusing on logistics, shipping and tourism as those industries are areas in which Oman has an advantage given its location on shipping routes connecting Europe and the Americas to Asia, he said. He didn’t disclose details on future investments.
Oman, the second-smallest economy in the Arabian Gulf, set up Oman Investment Fund in 2006 to preserve and expand the country’s wealth. The fund manages about US$6bn, according to the Sovereign Wealth Fund Institute. Dr Scacciavillani declined to comment on the size of the fund.
Oman’s economic growth slowed last year after oil plunged by almost 50 per cent, cutting state income. Crude needs to trade in the long term at about US$80 a barrel, compared with US$65 now, for producers to supply enough oil to meet global demand, he said.
The fund holds a stake in the Dubai Mercantile Exchange, a platform which trades the country’s crude. Since it’s outside OPEC, Oman sees the exchange as a strategic investment for the pricing and sale of its oil, Dr Scacciavillani said. CME Group, the world’s largest futures exchange, also owns part of the Dubai oil exchange.
