Interview: Abdulsalam Al Murshidi
What drivers have helped boost Oman’s investment appeal within the region and beyond?
ABDULSALAM AL MURSHIDI: Oman’s investment attractiveness has improved in recent years, driven by strategic initiatives under Oman Vision 2040, which aim to diversify the economy beyond oil and gas. Sectors such as logistics, manufacturing, mining, renewable energy and tourism have been prioritised to create a more resilient and sustainable economic landscape. Additionally, Oman has strengthened its appeal to investors through establishing free zones, signing a free trade agreement with the US, and launching a package of competitive incentives – all of which leverage the country’s advantageous geographical location as a regional trade centre.
FFO is set to play an integral role in this transformation by channelling investment into high-growth sectors, attracting foreign direct investment (FDI) and fostering innovation. Moreover, by supporting key industries, FFO accelerates economic diversification, drives job creation and enhances local expertise through knowledge transfer. These efforts are expected to contribute to Oman’s long-term prosperity and global competitiveness.
Which key projects have raised Oman’s investment profile, and in what ways is FFO set to drive the country’s economic transformation?
AL MURSHIDI: By the end of 2024 FFO had approved 44 projects across 10 areas – namely e-commerce, electric vehicles, financial technology (fintech), food and beverage, health care, ICT, the industrial segment, renewable energy, technology and tourism – with a total project size of OR1.2bn ($3.1bn). Additionally, FFO has attracted over OR885m ($2.3bn) in FDI since its launch in January 2024, with an investment commitment of OR333m ($865.5m). Among its transformative projects is the United Solar Polysilicon plant, which has a production capacity of 100,000 tonnes per annum. By utilising Oman’s silica metal to manufacture solar panels, this venture has established a value chain within the sultanate, reinforcing the country’s position as an influential player in the renewable energy sector.
To what extent does FFO foster economic diversification and complement the National Development Fund (NDF) to advance Oman’s goals?
AL MURSHIDI: FFO supports economic diversification by investing in a variety of sectors other than oil and gas, or real estate – reducing Oman’s reliance on these industries. Moreover, it targets emerging fields such as e-commerce, mining, renewable energy and tourism – in addition to innovative solutions such as artificial intelligence, fintech and agricultural technology – thereby promoting sustainable growth. The fund invests in sectors that are crucial for the long-term sustainability of Oman’s economy, which directly aligns with the broader goals of the NDF. FFO has a mandate to allocate 10% of its budget to invest in projects that drive innovation and entrepreneurship, while the NDF focuses on critical infrastructure. Together, they foster balanced economic development. FFO further complements the NDF by directing capital toward projects that promote diversification and by endorsing strategic initiatives aligned with Oman Vision 2040.
In what ways do FFO’s priority sectors align with Oman’s economic diversification strategy and social advancement objectives?
AL MURSHIDI: FFO focuses on industries such as alternative energy, manufacturing, technology and tourism, which are vital to Oman’s goal of reducing dependence on oil and gas. Investment in education and health care aligns with social advancement goals, improving living standards and developing human capital. These areas help to create a diversified economy with sustainable jobs and inclusive growth across the country. By targeting both economic and social objectives, FFO is key in shaping a balanced, equitable future for the country.
