It is the sovereign wealth fund of the state that undertakes the investment of financial surplus forwarded to it. It is as well the main investment arm of the country which acts on behalf of the government of Oman in managing and investing the surplus achieved by the state from Oil and Gas revenues. SGRF aims to achieve the best possible returns in the long-term to support the government efforts in diversifying income resources and securing returns for future generations, and to achieve the balance of the supreme financial policies of the state.
The fund was established in 1980 pursuant to Royal Decree number 1/80 and the subsequent amendments to this decree which include S.D 39/1992, S.D 84/2002 and 47/2005. The fund has a separate juristic entity which has complete independence in managing its administrative and financial affairs. It is supervised by the Ministry of Finance in accordance with the decisions issued by the Financial Affairs and Energy Resources Council (FAERC) in determining the policies and rules to be followed when investing fund's money.
The resources of the fund comprise of the following:
- Emerging resources resulting from exceeding the ceiling of the proposed oil prices during the approved five year development plan.
- Any surplus results by the end of the financial year
- Investment revenues on the fund's money
- The assets of the government that can be circulated for investment purposes that existed as surplus of the state prior to 1 January 1980
- Any other funds that should be attached to SGRF if the government deems appropriate
- State General Reserve Fund invests mainly outside the Sultanate as is the case with most sovereign wealth funds around the world. It also plays a major role in investing inside the country directly through its subsidiaries (whether companies or establishments), and indirectly via the ownership of shareholding through its subsidiaries in other companies
To be a substantial resource that strengthens the government's efforts in achieving financial stability and diversity in country's economy, and an effective player in ensuring the continued development of the state. This ensures that the wealth of the country will be reserved for future generations.
To achieve sustainable financial revenues through the investment of financial surplus of the state in various assets that have acceptable risks outside the Sultanate, and carrying out a leading role in motivating and establishing strategic projects inside the Sultanate.
- To maximize the revenues of the investments and administering them in a cautious way with less risks;
- To invest the money of the fund to achieve the best possible revenue with the observance of the distribution of risk criteria;
- To direct the investment in a strategic manner within a relatively long term period;
- To lead in the application of the best international practices;
- To benefit from the international relation network of the fund by attracting investments to the Sultanate and promoting local investments;
- To communicate with society in building the future of Oman;
- To develop national competencies by investing in Omanis so that the fund is unique in the economic and financial sector.