In a move reflecting the growing commitment to fostering economic and investment cooperation among Arab states, the Sultanate of Oman and the People’s Democratic Republic of Algeria signed an agreement to establish a joint investment fund valued at over 115 million Omani rials (approximately $298 million). The fund aims to support strategic projects in key sectors such as food security, pharmaceuticals, and mining.
The agreement was signed between the Oman Investment Authority and the Algerian Ministry of Finance during Sultan Haitham bin Tariq’s official visit to Algeria. According to an Omani statement, the fund seeks to “promote and develop investment cooperation between the two countries” and contribute to achieving sustainable development goals while expanding joint investments for mutual benefit.
The visit also included the signing of several memoranda of understanding in various sectors, particularly mining and energy. An agreement was signed between Algeria’s National Geological and Mining Exploration Company (a subsidiary of Sonarem) and Oman’s Mineral Development Company (a subsidiary of the Oman Investment Authority). Additionally, a preliminary term sheet for a framework agreement was concluded between Algeria’s energy company Sonatrach and Oman’s energy firm Abaraj, opening new prospects for extensive energy cooperation.
Further memoranda were signed in areas such as the pharmaceutical industry and agricultural cooperation—sectors prioritized by both governments for their contributions to food security, essential product supply, and the enhancement of local production and industrial development.
This collaboration aligns with both countries’ shared ambition to diversify their economies and reduce dependence on the oil sector. The Oman Investment Authority is a key economic player abroad, having signed nine similar cooperation agreements with countries including Saudi Arabia, Qatar, Spain, Brunei, Vietnam, Uzbekistan, Pakistan, India, and Turkey, as part of a strategic vision to expand its investment portfolio and increase returns.
Algeria, meanwhile, is pursuing an ambitious economic policy to strengthen its local and foreign private sectors, reduce import dependency, and effectively utilize untapped natural resources. President Abdelmadjid Tebboune outlined an economic vision last December targeting up to 5% growth in non-oil sectors by 2025, requiring strategic partnerships and a more investor-friendly environment.
The establishment of the Omani-Algerian investment fund signals a new direction for Arab economic relations, based on long-term partnerships and the integration of opportunities between the Gulf states and North Africa—a potential precursor to broader regional mega-projects in the coming years.
