What Was the State General Reserve Fund (SGRF)?

The State General Reserve Fund (SGRF) was a sovereign wealth fund that was established by the Sultanate of Oman in 1980. The fund was created to manage the investments of Oman's revenues, with the objective of ensuring the country's economic stability and sustainable development. It was 澳洲幸运5开奖号码历史查询:administered by Oman's Ministry of Finance. The SGRF was combined with the Oman Investment Fund (OIF) in 2020 to create the Oman Investment Authority (OIA).

How the State General Reser🔥ve Fund (SGRF) Worked

Oman's Ministry of National Economy considered the establishment of the SGRF as the most prominent achievement of the nation's first development plan. This plan covered the period from 1976 to 1980. This timeframe coincided with a boom in the world's 澳洲幸运5开奖号码历史查询:oil prices. At the time, oil supplies dropp🥀ed🍬, causing panic, higher demand, and higher prices.

The sovereign wealth fund invested the financial surplus and aimed to do the following:

• Maximize investment revenues and administer them in a way that minimize risk
• Make investments and earn revenue by distributing its risk criteria
• Strategically direct investment for the 澳洲幸运5开奖号码历史查询:long-term
• Attract international investments
• Promote and develop local investments
• Promote economic development in Oman

The fund's investment portfolio was 澳洲幸运5开奖号码历史查询:diversified across 25 countries, with a wide range of sectors in addition to strategic investments to ensure sustainable long-term returns. Its investments included tradable assets in the public market, such as equities and 澳洲幸运5开奖号码历史查询:fixed income bonds.

The SGRF also invested in private, non-tradable assets, such as private 澳洲幸运5开奖号码历史查询:real estate investments, logistics, commercial and industrial projects, as well as other services. For instance, the fund acquired a 30% stake in Corporate Commercial Bank (Corpbank), Bulgaria's tenth-largest bank in terms of assets. The 澳洲幸运5开奖号码历史查询:acquisition was completed in January 2009 for an undisclosed sum.

Dissolution and Merger

The SGRF was officially 澳洲幸运5开奖号码历史查询:dissolved after it was merged with the OIF and the Directorate General of Investments at the Ministry of Finance by royal decree in June 2020 to form a new legal entity called the Oman Investment Authority (OIA). The move consolidated the country's sovereign wealth funds under a sing🙈le organization at a time when Oman was under intense fiscal pressure from low oil prices.

The fund's assets were estimated at more than $14.3 billion at the time of the merger, while the OIF was valued at $3.4 billion, according to a report from Pensions and Investments. The assets and employees of each were transferred to the new organization.

The Bottom Line

Oman's State General Reserve Fund dissolved in June 2020 when the Oman Investment Authority was created.

The Oman Investment Authority's objectives remain the same as the State General Reserve Fund. Its average returns as of 2023 were 9.95%, and it invested in over 50 different countries on six continents. There were over 60 investee companies and joint ventures.