The Sovereign Wealth Fund Institute estimates more than thirty four billion American dollars endowed under the Omani Investment Fund (OIF); established in 2006, the gulf nation has rather unusually committed less than sixty transactions until date. More than a dozen other nations indulge their excess cash into global investments; nevertheless, Oman’s case is a point to ponder upon. In terms of both geo-politics and the veil, that envelopes Oman’s exact aspirations.
Still, Oman’s sovereign funds (declared) are nowhere to the likes of China, UAE or Norway. All three countries otherwise, boast numbers in trillions. Last year, the IMF issued a rather dubious warning to the Sultanate on how it was losing its credit ratings that could result into debt defaults. The warning was puzzling, given how Oman was compared to other Middle Eastern nations in terms of how investments could be made for ratings recovery. Such is the nature of Omani Investment Fund, just like its one page website without any information; nobody knows exactly how the sovereign wealth is used. It was a tricky nuisance from the IMF, an attempt to provoke statements about the fund’s whereabouts. Still, the finance ministry decided not to comment on the matter.
These reasons make Oman peculiar. More than how the fund is being operated, political and financial consistency are at stake. In the same report, the IMF advertised how Saudi Arabia was increasing its Value Added Tax (VAT) to achieve positive credit ratings. It was a shout out to shy nations like the Sultanate; but most importantly, it can be perceived as an apprehension to fit the jigsaw. Power balances are at stake in the Middle East, Oman’s secretive way of dealings could lead to events that could be improbable to predict by its neighbours and institutions like the IMF. Predictably, a sudden rise of explicit activity by the coastal nation, along turbulent geo-political reality could raise eyebrows. The world wants to know more of the OIF, but there are fears of acknowledging the truth.
Already, the kingdom is on equal footing with two regional aggressors, Iran and Saudi Arabia. It shares a land border with Yemen and Somalian shores are not far from the kingdom’s territory. Yet, it has managed to keep low affairs on regional rivalries, whilst managing to develop its economy, better than most nations in the continent. However, this could change. More or less, the Omani secrecy is providing an amount of stability in the region. Apart from UAE, the kingdom provides a cushion for bilateral links between nations that are short on friendship.
Between the Gulf of Aden and the Gulf of Oman, lies the Duqm port. A strategic location for international trade that connects most of south Asian nations with the rest of Middle East. It also provides possible answers to the IMF’s curious incursion into the kingdom’s spare money. China has invested billions into the port and is expected to accelerate its trade with Oman and other African nations. The Duqm port is believed to be the lifeline of China’s Belt and Road project. The Asian giant is connecting Europe and Asia via Oman; hence, apprehensions in the west are cemented over aspirations. Economic links with China does not answer the entire puzzle but somehow fits the jigsaw. Other rumours are suggesting that Soft Bank, the Japanese conglomerate are looking to acquire infrastructural investment from the OIF. Even though the Omani aspirations are looking transparent from the outset, there is a dearth of adequate knowledge on its accurate motives. Apart from its low-key personality, the kingdom is uncharacteristically developing its own identity. In terms of power capital, Oman is on the rise. Quietly, it is stacking up all the face cards.