Santiago Principles Self-Assessment

Oman Investment Authority

Fund Details Fund Website Search Assessments PDF version
  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

The Royal Decree 61/2020 [in Arabic] defines OIA's legal status. This Decree gives OIA financial and administrative independence and states that OIA is subordinate to the Council of Ministers.

OIA was formed pursuant to the Royal Decree 61/2020 and has independent legal status. OIA holds assets in its own name and this legal status is stated clearly in the Royal Decree.

The Royal Decree 61/2020 is a public document and are freely available.

Royal Decree 57/2021 [in Arabic] states the implementing regulations for OIA (as stated in Article III of the Royal Decree 61/2020). This provides further clarity on OIA purpose and mandate to the public and other stakeholders.

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

Royal Decree 57/2021 sets out that OIA has a board and executive management, with distinctive roles. The board is appointed by royal decree. At the current time, Article 9 of the decree empowers the board to establish the new governance structure, investment strategy operating practices, and administrative and financial regulations. The board is also responsible for the general oversight of the fund in line with established regulations and systems, as well as drawing up the annual budget. The board is also responsible for representing the fund at a governmental and legal level.

Under article 11 of Royal Decree 57/2021, the management has an operational function, putting the strategy approved by the board into practice.

More details are set out in OIA’s Corporate Governance Manual which is currently under review post the issue of Royal Decree 57/2021.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

OIA has Investment Guidelines that govern OIA investment activities which include risk tolerance. We also have an approved Risk Policy and risk appetite statement.

Post the issue of Royal Decree 61/2020, we are currently reviewing all these documents to align with the objectives and mandate of the OIA.

OIA’s investment policy includes the breakdown of internal versus external allocations in public markets. There is an explicit cap for external allocations and Board approval is required for any changes. External allocations follow a defined selection and monitoring process. All allocations need to be in line with the asset allocation strategy and overall portfolio guidelines.

A brief high-level investment statement is included on the OIA website.