OIA Discusses the Development Strategy of its National Economic Diversification Portfolio
In continuation of its governance efforts to enhance the general performance of its companies and achieve better alignment and integration, Oman Investment Authority (OIA) organized the Rawabet Fifth Forum. The event was attended by many high-profile professionals, including several Ministers and Undersecretaries, Chairpersons and CEOs of OIA Companies, and a number of specialists.
In his opening remarks, OIA President, HE Abdualsalam Al-Murshidi, said that “there are indicators of growth in OIA’s National Development portfolio. Currently, two sectors contribute to the profitability of this portfolio, most prominently the energy sector, followed by the logistics sector.” HE continued to point out that “there are indicators of the increased contribution of several other sectors in the national development portfolio in the upcoming years including tourism, food and fisheries and the Technology sector, and mining.” HE went on to say that “Rawabet Fifth Forum is a vital stage in the timeline allocated for the Business Plan Cycle where OIA companies work on their 5-year business plans. The companies will submit the first draft of their plans in August and the final draft in October 2022. OIA will, in turn, approve these plans by December 2022.”
The Forum began with an overview presentation discussing OIA’s strategy in managing its National Development portfolio, which is built on eight main strategic priorities, which include: Financial sustainability, selective growth, contribution to the GDP, attracting private investors, divestment, In-country Value (ICV), Synergies and implementation of the governance framework. Then CEOs of OIA Companies took turns presenting their companies’ strategies. The Forum featured presentations from 12 OIA Companies, including OMRAN Group, Oman Air, Oman Airports, Asyad Group, Oman Food Investment Holding Company (OFIC), Fisheries Development Oman (FDO), OQ, Mining Development Oman (MDO), Oman Environmental Services Holding Company (Be’ah), Namaa Group, and Oman Liquefied Natural Gas (Oman LNG). The event also featured Q&A sessions to encourage engagement and discussions among participants.
Rawabet’s Strategic Pillar, the key topic of the Forum, targets the alignment of OIA Companies’ plans with OIA’s strategies and Oman Vision 2040. The objective is to achieve financial and operational sustainability while stimulating and enabling sectors outlined in Oman Vision 2040. The Strategic Framework also targets to enhance diversification when allocating capital resources and encourages the partnership with the private sector in new investments.
The Strategy team within Rawabet has reviewed the strategies and business plans of the holding companies in the National Development Portfolio. Based on the current positions of the companies, its goals, and OIA’s strategic priorities, the team has set key performance indicators for the Boards of Directors for its respective companies. Separately, the team is issuing OIA’s Business Plan Guidelines, ensuring consistency and best market practice across its companies.
Rawabet program was launched by OIA in September 2020 and has since delivered many outcomes. Most prominently, it published 11 policies and guidelines, including the Code of Governance, the tendering and procurement policy, investment policy, and divestment policy. Additionally, the program launched the ICV initiative ‘Qimam,’ which focuses on generating locally produced goods and services according to clear guidelines. Qimam aims to increase Omanization, develop Omani competencies, and supply local products to encourage and develop local industries. Rawabet also succeeded in launching several initiatives to support SMEs, enable them, and enhance their contribution to the national GDP.
Since its formation, Rawabet was able to carry off over 400 joint interactions between OIA and its companies, involving over 70 OIA specialists and 300 specialists from OIA companies. It also held several workshops with chairpersons of the boards and CEOs of OIA companies. Moreover, it organized over 40 seminars relevant to general governance frameworks.