OIA Holds Rawabet`s 3rd Workshop; Lead Businessmen, OCCI`s Representatives Attended
Oman Investment Authority (OIA) held the third workshop of its Rawabet Program, which aims at establishing the governance framework for State-Owned Enterprises (SOEs), in the presence of Chairpersons and CEOs of the SOEs, along with lead business people, and representatives from Oman Chamber of Commerce and Industry (OCCI); as part of the Authority`s efforts aiming at building a unified framework for state-owned enterprises and cementing the principles of empowerment and integration with the private sector
The event discussed the prospects of Integration between the SOEs and the private sector, objectives of such integration, sectors involved, and ways of achieving these objectives. One of OIA’s key aims is to empower the private sector by allowing it wider prospects to be engaged in strategic partnerships with the companies and investments supervised over by the Authority. Furthermore, the workshop addressed the possibility of allocating a certain percentage in some SOEs to the private sector investments based on specific carefully studied standards and terms; in order to enhance the role of the private sector in the national economy while maintaining high levels of In-Country Value.
By creating real and effective partnership between the private sector and the SOEs, OIA paves the way for attracting investment opportunities, generating good returns from corporate divestments, while realizing the desired economic diversification objective by investing in new promising sectors, supporting capital markets, developing local products, and providing SMEs with required incentives.
The Rawabet Program Management Team presented the Governance Framework (guidelines and policies) that have been formulated and completed during the program. These include the Board Charter, Shareholders’ Reserved Matters, Dividend Policy, Risk Management, Information Security, Legal Affairs, Internal Audit, Media and Communications, Procurement & Tendering. The Governance Framework will come into effect by the end of this year.
Rawabet’s third workshop included discussion sessions on the guiding principles for the mechanisms of entry and exit from investment projects, ways of achieving in-country value, and the role of the private sector in supporting investment environment in the Sultanate. In-country value is one of the main drivers of economic growth in Oman by which suppliers and contractors in the private sector are required to provide goods and services based on clear principles to ensure high Omanisation rates, develop local competencies, and supply local products to encourage and support developing local industries, and investing in fixed assets.
It is worth noting that the OIA had recently launched (Rawabet) with the aim of establishing a general framework for governing the state-owned enterprises; and creating a platform that aligns the policies and regulations of these companies with OIA policies, in order to unify and align them with Oman Vision 2040, especially with regard to economic diversification.
Furthermore, Rawabet aims to improve the companies’ efficiency and help them achieve their goals and overcome the accompanying challenges. It further helps in establishing solid foundations to ensure participation of the maximum proportion of private sector institutions, and create an integrated plan to support the investments of these companies with regard to In-country value, divestment, partnership, and listing in the security markets. The Program will also serve as a knowledge sharing platform for resources, expertise and best investment practices.