Muscat – Oman Investment Authority (OIA) has led an alliance of sovereign wealth funds and investment institutions to establish a $500 million (approximately OMR192.2 million) fund targeting investment opportunities in Central Asia and the Caucasus. The fund’s establishment agreement is scheduled to be signed in early November.
The Central Asia and Caucasus Fund aims to attract capital from sovereign wealth funds, investment institutions and strategic investors worldwide to finance promising opportunities in logistics, renewable energy, mining, food and agriculture, healthcare and other sectors.
The initiative seeks to build 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 support Oman’s economic diversification, knowledge transfer and 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 build strategic partnerships and mobilise capital for promising markets.
He said the fund would strengthen economic and investment ties between Oman and the region, creating broader opportunities for cooperation and joint investment. He added that OIA aimed to use 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 talent, focusing on 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. Foreign direct investment inflows into these countries rose by 16.6% to approximately OMR1.78 billion ($4.64 billion) by the end of 2025, according to the figures cited by OIA. The region also recorded around 37.36 million inbound tourists during the year, creating opportunities in logistics, infrastructure and related services.
The region’s natural resources include oil, gas, gold, copper, uranium and hydroelectric power, offering investment potential across several industries. Its average GDP growth rate reached approximately 7% in 2025, compared with global growth of 3.5%, according to the International Monetary Fund.
OIA subsidiaries, including ASYAD Group, Oman Mining Development Company and OQ Group, are studying investment opportunities in logistics, mining and energy in Central Asian markets. Their participation could facilitate the expansion of Omani businesses and leverage their expertise in sectors that support economic diversification and development.
The initiative also reflects OIA’s approach to economic diplomacy, turning international relationships into investment opportunities while strengthening Oman’s links with Central Asia. It is intended to provide regional partners with access to Gulf and African markets through Oman and attract 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 partnership with Uzbekistan’s Reconstruction and Development Fund in 2009; a partnership with Azerbaijan Investment Holding 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. Around 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 sustainable long-term returns, risk diversification and the transfer of technology and knowledge to domestic sectors.