Oman’s state-owned entities change hands
As the newly-formed Oman Investment Authority takes over most of the Gulf country’s public assets, questions arise as to whether this is streamlining the administration, economic reform or power consolidation?
Following his ascent to the throne in January, Sultan Haitham bin Tariq Al Said pledged to “revise the work of government companies, with a view to upgrading their performance and efficiency.”
Announced on June 4, the Oman Investment Authority (OIA) will cluster all government companies, with the exception of Petroleum Development Oman, and take over $17.7 billion worth of assets currently held by the sultanate’s sovereign wealth funds.
"We could absorb 66 state-owned entities," a source at the investment vehicle told Al-Monitor on condition of anonymity. The move might also trigger a change of attitude in those companies by "exiting a public servant mindset and the stranglehold of the Ministry of Finance," the source said. Experts believe it could also minimize improper use of resources.
“The effective control on the management of those companies may remain well in the hands of the government,” commented Fabio Scacciavillani, former chief strategist at the Oman Investment Fund — one of the sovereign wealth funds merged with the OIA.
