The long-awaited consolidation of the pension funds has come into effect by virtue of Sultani Decree 33/2021 regarding the Systems for Retirement and Social Security, consolidating the management and operation of Oman’s various pension funds into two funds: a fund named the “Social Security Fund” and a fund named the “Military and Security Services Pension Fund.” Both funds shall have a legal personality, enjoy financial and administrative independence and shall be subordinate to the Council of Ministers. The systems of both funds shall be issued by a Sultani Decree.
Prior to the consolidation of the funds, there were nine funds that were subject to the limitations set forth by Sultani Decree 31/1996 on the Rules Organizing Investment of the Funds of each of the Public Authority for Social Securities and Pension and Retirement Funds, and this was further amended by Sultani Decree 12/2009.
The amendments issued the updated list of entities that such provisions are applicable to:
1. The Sultan’s Special Force Pension Fund;
2. Internal Security Service Pension Fund;
3. Royal Guard of Oman Pension Fund;
4. Royal Oman Police Pension Fund;
5. Royal Office Employees Pension Fund;
6. Public Authority for Social Insurance;
7. Civil Service Employees Pension Fund;
8. Diwan of Royal Court Employees Pension Fund;
9. Defence Ministry Pension Fund; and
10. Any other pension funds that may be established per Sultani Decrees.
The investment of the capital of the aforementioned funds shall be in the fields listed in the amendment, specifically: (i) real estate properties in the Sultanate and outside; (ii) shares and bonds issued by foreign companies listed in stock markets in foreign countries; (iii) bonds issued by the Sultanate’s government and foreign countries’ governments; (iv) shares and bonds issued by Omani stock companies; and (v) the deposits a local and foreign banks.
Pension funds are a central component of the financial sector in the Sultanate of Oman. The consolidation into the Social Security Fund and the Military and Security Services Pension Fund is a reflection of Oman’s continuous efforts to boost and develop the government sector.
