Oman Leads Alliance to Establish $500 Million Fund for Central Asia and Caucasus Investments

Muscat, The Gulf Observer: The Oman Investment Authority (OIA) has led an alliance of sovereign wealth funds and international investment institutions to establish a $500 million fund aimed at capitalising on investment opportunities across Central Asia and the Caucasus.

The establishment agreement for the Central Asia and Caucasus Fund is scheduled to be signed in early November. The fund will seek to attract capital from sovereign wealth funds, investment institutions and strategic investors worldwide to finance promising projects in logistics, renewable energy, mining, food and agriculture, healthcare and other key sectors.

The initiative aims to strengthen long-term investment partnerships, capitalise on the region’s economic growth and expand the geographical reach of OIA’s investments and those of its subsidiaries. It is also expected to contribute to Oman’s economic diversification, promote knowledge transfer and enhance international investment cooperation.

Mulham bin Bashir Al-Jarf, Vice Chairman of OIA for Investment, said the authority’s leadership of the alliance reflected the confidence of sovereign wealth funds and international investment institutions in its ability to establish strategic partnerships and mobilise capital for promising markets.

He said the fund would strengthen economic and investment relations between Oman and the region, creating broader opportunities for cooperation and joint investment. He added that OIA intended to leverage international partnerships to expand cross-border investments and establish sustainable economic relationships that deliver mutual benefits.

The fund will be managed by an Omani company led by national professionals, with a focus on unlocking the economic and investment potential of Central Asian and Caucasus markets.

Kazakhstan, Uzbekistan, Azerbaijan, Kyrgyzstan and Tajikistan have a combined population of more than 86 million. According to figures cited by OIA, foreign direct investment inflows into these countries increased by 16.6 per cent to approximately OMR1.78 billion ($4.64 billion) by the end of 2025.

The region also recorded around 37.36 million international tourist arrivals during the year, highlighting opportunities in logistics, infrastructure and related services.

Rich in natural resources, including oil, natural gas, gold, copper, uranium and hydroelectric power, the region offers considerable potential across multiple industries. Its average gross domestic product growth reached approximately 7 per cent in 2025, compared with global growth of 3.5 per cent, according to the International Monetary Fund.

OIA subsidiaries, including ASYAD Group, Oman Mining Development Company and OQ Group, are exploring investment opportunities in logistics, mining and energy across Central Asian markets. Their involvement could facilitate the expansion of Omani businesses into the region while leveraging their expertise in sectors that support economic diversification and sustainable development.

The initiative also reflects OIA’s broader economic diplomacy strategy, which seeks to translate international relationships into tangible investment opportunities while deepening Oman’s engagement with Central Asia. The fund is expected to provide regional partners with access to Gulf and African markets through Oman, while attracting international investors to the Sultanate.

The new fund builds on OIA’s existing investment partnerships in the region. These include the Omani-Uzbek Investment Company, established in 2009 in partnership with Uzbekistan’s Reconstruction and Development Fund; a partnership with Azerbaijan Investment Holding established in 2025; and an investment partnership with Kazakhstan’s sovereign wealth fund, Samruk-Kazyna, in 2026.

OIA continues to diversify its investments through three main portfolios, with total assets exceeding OMR23 billion. Approximately two-thirds of its investments are directed towards Oman through the National Development Portfolio and the Oman Future Fund, supporting domestic economic growth and diversification.

The remaining third is invested internationally through the Generations Portfolio, which focuses on generating sustainable long-term returns, diversifying investment risks and facilitating the transfer of technology and knowledge to domestic economic sectors.

The establishment of the Central Asia and Caucasus Fund represents a further step in Oman’s efforts to expand its international investment footprint, strengthen economic ties with emerging markets and build long-term partnerships that support shared prosperity and sustainable development.