Oman fund teams up with Saudi venture capital firm

Oman’s sovereign wealth fund arm ITHCA Group has entered a strategic investment partnership with Saudi Vision Venture Capital, marking a significant step in Muscat’s efforts to deepen the funding pool and regional reach available to start-ups based in the sultanate.

The agreement is designed to give Omani founders structured access to the Saudi investment ecosystem, one of the largest and fastest-growing venture capital markets in the Middle East. Under the arrangement, Saudi Vision Venture Capital will work with ITHCA Group to support early- and growth-stage companies, while sharing expertise, networks and market access across the Gulf.

ITHCA Group, which operates under the Oman Investment Authority, plays a central role in deploying state-backed capital into sectors aligned with economic diversification goals, including technology, logistics, tourism and advanced industries. The partnership reflects a broader policy push to strengthen private-sector growth and reduce dependence on hydrocarbons by fostering a more robust start-up and innovation landscape.

Saudi Vision Venture Capital, backed by Saudi Arabia’s Ministry of Investment, has become an increasingly influential player in the regional venture ecosystem. It focuses on mobilising private capital, developing venture funds and linking entrepreneurs with institutional investors across the Gulf and wider Middle East. Its involvement is expected to provide Omani start-ups with exposure to larger funding rounds, regional customers and cross-border partnerships.

People familiar with the agreement said the collaboration would prioritise scalable businesses with the potential to expand beyond Oman, particularly in digital services, fintech, logistics technology and industrial innovation. By linking Omani ventures to Saudi networks, the deal aims to address a longstanding challenge faced by founders in smaller markets: limited access to follow-on capital and regional growth opportunities.

Venture capital activity across the Gulf has accelerated over the past decade, led by Saudi Arabia and the United Arab Emirates, which together account for the bulk of deal value and fundraising. Oman’s ecosystem has developed at a more measured pace, supported by government-backed initiatives, incubators and seed funding programmes. Policymakers have increasingly focused on partnerships with regional investors to close the scale gap and improve the survival rate of start-ups beyond the early stages.

ITHCA Group has previously invested in local venture funds and direct start-up stakes, while also supporting infrastructure and industrial projects. The tie-up with Saudi Vision Venture Capital signals a shift towards deeper integration with neighbouring capital markets rather than a purely domestic focus. Officials see this as essential for building globally competitive companies from Oman.

For Saudi Vision Venture Capital, the partnership aligns with Riyadh’s ambition to position the kingdom as a regional investment hub under Vision 2030. By extending its footprint into Oman, the firm gains access to new deal flow and emerging sectors, while reinforcing cross-border investment links within the Gulf Cooperation Council.

Industry analysts note that such collaborations are becoming more common as Gulf states seek to pool expertise and capital rather than compete in isolation. Regional venture funds increasingly look beyond national borders to achieve scale, diversify risk and tap into specialised talent pools. Oman’s relatively untapped market, combined with targeted government support, is seen as offering attractive opportunities for early movers.

The agreement also comes amid heightened interest in start-ups addressing efficiency, digitalisation and sustainability across traditional industries, areas where Oman’s logistics corridors, ports and industrial zones provide testing grounds for new technologies. Access to Saudi capital and commercial networks could help these firms move more quickly from pilot projects to regional deployment.

While financial terms of the deal were not disclosed, both sides have emphasised its strategic nature rather than a single funding vehicle. The focus is expected to include joint evaluation of start-ups, co-investment opportunities and advisory support aimed at improving governance, scalability and market readiness.