Management Discussion and Analysis Report

Al Anwar Investments SAOG (AAI) was incorporated on 20th December 1994 as a publicly listed company on Muscat Stock Exchange (MSX). Over the last twenty-nine years, Al Anwar has founded a number of successful companies such as Al Maha Ceramics, Voltamp and Arabia Falcon Insurance.

In the next 3 years, Al Anwar plans to grow its asset base by raising its paid-up capital, enhancing the value of its investments, and by deploying capital in new investments.


Al Anwar is a significant minority shareholder in a number of private and publicly listed companies in Oman. Al Anwar follows a private equity model of investing and is an active investor. Al Anwar invests in companies with the intention of improving the business performance and enhancing the value of the company.

Al Anwar’s mission is to support, create, and nurture successful entities that create and enhance long-term value for the stakeholders through:

  • Investing in companies with scalable, creative, and sustainable Business Models.
  • Enhancing Corporate Governance and ensuring adequate systems and procedures.
  • Focusing on execution and operational excellence.


  • The year 2022 was a challenging year for Oman’s economy due to the rise of global interest rates at an unprecedented rate, high inflation, and the disruption that has taken place due to the war in Ukraine. Nonetheless, oil prices since December 2021 have recovered to a large extent and have been trading at around USD 70-80 per barrel. The increase in oil prices and the reopening of business activity has as a result and in spite of the challenges improved the economic activity in 2022.
  • Total public revenue in 2022 increased to OMR 14.2 billion (34.5% increase from last year). Total public spending in 2022 was estimated to be OMR 13.1 billion (8.3% higher than 2021 and 7.9% higher than the budget). A surplus of OMR 1.1 billion was recorded in 2022 versus a deficit of OMR 1.5 billion in the prior year.
  • Oman’s Government announced a Budget for 2023 with a total revenue of OMR 10.5 billion, expenditure of OMR 11.35 billion, and a fiscal deficit of OMR 1.3 billion. The 2023 budget aims to further strengthen financial and economic stability through economic diversification policies, employment generation, improved credit rating and by other policies and legalization that will support Oman in achieving its Vision 2040


In the last 5 years MSX 30 Index increased by 2.2% from 4,750 in April 2018 to 4,854 in March 2023.


Description Mar-21 Mar-22 Mar-23
Banking and Investments 3.07 4.19 4.83
Services 1.22 1.24 1.35
Industry 0.25 0.38 0.28
Total Market capitalization 4.22 5.81 6.46

Since March 2022, the total market capitalization of MSX has increased by approximately OMR 0.65 billion. This is primarily due to an increase in the market capitalization of Bank Muscat, Sohar International, Omantel, NBO, and Bank Dhofar.

The value of traded securities during 2022 reached OMR 0.94billion an increase of 14.92% compared with last year.


AAI remains cautiously optimistic on Oman economy. We are aware that the current economic environment represents an opportune time to invest in sectors that will benefit from the recovery of Oman’s economy.


The profitability for the year ended 31st March 2023 was improved mainly on account of fair value gain on our investment classified at fair value.


Owing to the inherent balance sheet strength and comfortable Debt/Equity position, AAI has rewarded its shareholders with healthy cash dividends in the last 5 years.

Growth in our investment portfolio over the years has been achieved whilst maintaining a manageable leverage position.  As of 31st March 2023, our Debt/ Equity ratio was 0.55.

AAI maintains a cautiously optimistic approach with a core focus on manufacturing, financial services and the education sector. We have a strong manufacturing cluster which has constantly produced good returns.  Our other clusters, financial services and education, have high growth potential.  Our investments are mostly long-term.  Our objective is to ensure that we increase the profitability and consequently the value of each of our investments.

Our investment portfolio as of 31st March 2023by clusters is as follows:

Our returns and our share of net assets of our associates and other significant investments for the year ended 31st March 2023are as follows:


Name of the Company (OMR’000) % holding Carrying Value Share of Profit/ (Loss) Dividend Share of Net Assets
Voltamp Energy SAOG 24.68% 4,093 (309) 4,097
Al Maha Ceramics Company SAOG (*) 18.74% 2,470 742 (467) 2,017
Arabia Falcon Insurance Co. SAOC 22.62% 4,754 237 (140) 4,423
Oman Chlorine SAOG 22.11% 7,722 868 (377) 4,915
The National Detergent co. SAOG 25.24% 5,283 (111) 4,052
National Biscuit Industries SAOG 29.22% 2,280 42 (73) 2,141
Al Ruwad International Education Services SAOC 43.51% 4,406 (32) 1,752

(*) During the year AAI sold 5% of AMC at the end of Mach 2023, whereby the shareholding has reduced from 23.74% to 18.74%. AAI still classified AMC as an associate as it continues to retain significant influence by way of its representation on the Board of Directors and participation in the decision-making of the associate.

Other Investments

Name of the Company (OMR’000) % holding Carrying Value Fair Value Gain Dividend Income Share of Net Assets
Bank Dhofar 1.47% 7,029 1,626 225 8,215
DIDIC 6.84% 4,700 97 8,728
Ominvest Bonds 2.50% 1,518 259 1,518
Almondz 11.94% 852 (684) 1,131

The cornerstones of our next three-year investment strategy are:

  1. Improvement of performance of our investee companies
  2. Monetization of certain investments
  3. Investment in new companies which have the potential to grow as economic conditions improve


AAI has a robust Risk Management framework in place that adheres to industry best practices. Risk Management is embedded in all core business functions and is an integral part of the business strategy. AAI follows a proactive Risk Management approach in remediating internal and external risks through conducting regular risk assessments of its portfolio companies, and operating environment and taking proactive action to mitigate emerging risks.

Risk issues impacting portfolio companies are proactively managed through close working relationships with investee companies and the prudent oversight of our Board representatives. Broadly, these risks take the form of increasing costs/ decreasing margins, competition from other sources of supply and shifts in customer preference for other solutions. Also, each of the investee companies has their own risk management process in place.


We acknowledge the contribution of our Board Members for their wisdom and valuable guidance which has helped us in the successful implementation of our strategy. Further, we appreciate the confidence entrusted by our shareholders.

Khalid Al Eisri
Chief Executive Officer