Oman Investment Authority’s Revamp Spurs State Companies’ Profitability

By the Editorial Team · Monday, August 3, 2026

The Oman Investment Authority’s restructuring has improved the financial health of several state-owned companies, with notable successes including OQ Group’s 48% debt reduction and OQ Refineries and Petrochemicals’ first profit in over 20 years. These results have boosted Oman’s sovereign credit rating and align with OIA’s goal of enhancing competitiveness and supporting Oman Vision 2040 through sustainable economic growth.

Oman Investment Authority’s (OIA) restructuring efforts have led to notable improvements in the financial performance of several state-owned companies, according to the authority’s latest quarterly report. The changes follow the transfer of government company ownership to OIA in 2020 and aim to address longstanding operational and financial difficulties while enhancing governance and sustainability.

In Issue 17 of Enjaz & Eejaz, the OIA’s quarterly publication, Thuraiya bint Ahmed al Balushi, Acting Chief Investment Officer for Economic Diversification Investments, detailed the impact of the restructuring programme. She highlighted that the authority’s initiatives have successfully returned multiple companies to profitability, reduced debt levels, and improved credit ratings across the state portfolio.

Among the most prominent examples is OQ Group, which has cut its total debt by 48 percent following a comprehensive restructuring. This overhaul strengthened internal synergies, reorganised the company’s capital structure, and led to investment-grade credit ratings from Fitch and S&P. Additionally, OQ Refineries and Petrochemicals recorded its first profit in more than 20 years, a milestone attributed to strategic reforms that improved operational efficiency, asset reliability, and financial structuring.

In the food sector, the merger of Oman Food Investment Holding Company (Nitaj) and Fisheries Development Oman fostered revenue growth and enhanced overall company performance. Similarly, Mazoon Dairy’s operational and distribution revamp lifted the company from break-even to its first operating profit.

Diversification and growth were also evident at Asyad Drydock, which expanded into higher-value services and achieved record operational results. The Oman Convention and Exhibition Centre, historically dependent on government subsidies, reported its inaugural operating profit by broadening revenue sources and attracting increased regional and international events.

Al Balushi emphasized that these collective achievements have contributed positively to Oman’s sovereign credit rating. She further noted that OIA intends to maintain its focus on increasing the competitiveness of its portfolio, deepening inter-company synergies, and fostering partnerships aligned with Oman Vision 2040.

The quarterly bulletin follows OIA’s recent announcement of record results for 2025, with profits reaching RO 2.9 billion and a 14.6 percent return on investment, elevating the authority’s five-year average return to 10.4 percent. The authority’s ongoing efforts reflect a commitment to delivering sustainable economic benefits for Oman and its population.

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