Oman’s largest sovereign wealth fund has reached an agreement with Japanese partners to establish a $400 million food and agribusiness investment fund, according to Omani officials.

 

The Gulf Japan Food Fund will be a facilitating vehicle for direct investment in Gulf Cooperation Council (GCC) states by Japanese food and agribusiness entities including grain and feed groups, dairy and vegetable companies, logistic firms, and research initiatives. The goal of the fund is to spend at least 35% of the funds in Oman.

 

Oman’s State General Reserve Fund will own a 37.5% share of the fund, while the state-run Oman National Investments Development Company and Gulf Investment Corp., which is owned by the six GCC states, will hold a combined 12.5%. The remaining half of the capital will be supplied by Japan’s Misuho Bank and Norinchukin Bank.

 

The formation of the Gulf Japan Food Fund is part of an Omani initiative to diversify its economy beyond oil, through the use of state funds to form overseas partnerships that will direct investment and technologies back to the sultanate.