Times of Oman2
Price in RO
24ct / gm
22ct / gm
Forex Rates vs R01
Back to Homepage
Plan to merge assets of pension funds
A. E. JAMES
January 06, 2014 , 5 : 57 pm GST
SAVE THIS ARTICLE
Darwish bin Ismail Al Balushi, minister responsible for financial affairs, has said that although the government planned the merger sometime back, it got delayed due to crisis in the financial market. – Times file photo
Oman government is planning to merge the assets of pension funds in an apparent move to save cost and enhance efficiency, when investing the corpus funds in stock markets.
However, the pension obligations or systems of separate pension funds will remain without any change.
"We have gone a long way in this respect. However, there are some matters that require alternate arrangements," said Darwish bin Ismail Al Balushi, minister responsible for financial affairs.
Oman has as many as ten pension funds, which include major players like the Public Authority for Social Insurance (Paci), Royal Oman Police Pension Fund, Ministry of Civil Service Pension Fund, Royal Guard of Oman Pension Fund, Internal Security Services Pension Fund and Diwan of Royal Court Employees Pension Fund.
The minister, while addressing the media to announce the state budget last week, said that although the government planned the merger sometime back, it got delayed due to the crisis in the financial market.
"All these crises had an impact on investors in entering the capital market. A decision was taken to wait until a clear picture emerges."
The proposal is under study and a collective management will increase efficiency and result in better returns on investment.
Market sources said that with the merger of pension funds, the size of the corpus fund becomes big.
"With the merger, there will be better cost savings and synergies. The pension funds will be able to plan their strategies in a bigger level. Now, different pension funds have varying strategies in deploying funds in the market," said a market analyst.
It is roughly estimated that 20 per cent of the market capitalisation of listed companies on the Muscat Securities Market (MSM) are with pension funds. With the growth in number of employees in the public sector, the size of the pension funds are also growing in leaps and bounds.
Rate this Article
Rates : 2, Average : 5
Post a Comment
Did you like this section? Leave a comment!
Your Name :
Your Email Address :
Your Comment :
Enter Image Text:
No Comments Posted
Latest in this section
AstraZeneca drugs group says profits halved, blames generics
Determined to help control prices, end monopoly: Oman Chamber of Commerce and Industry
Oman eyeing Africa for non-oil exports
Omantel allots 95% shares in its public offer
Omran opens new four-star Crowne Plaza Hotel in Duqm
TOP RATED ARTICLES
India’s Modi ‘overwhelmed’ by mass support in Varanasi
Everyday I tell him that I love him
Susan French/Tony James Features
Petroleum Development Oman’s OMR5.5m pledge for society
A E James
Royal Oman Police urge caution over summer thefts
Fahad Al Ghadani
Royal Oman Police arrests fraudster for defrauding money exchange shop
Times News Service
More in News
More than just a moustache - Adolf Hitler vs Charlie Chaplin
Urban gardens greening Berlin rooftops, airfield
Italian violinist strikes a chord with street children
Tips for writing a good article
How to choose your writing form and communicate your creative thoughts
Natasja Engholm - Special to Times of Oman
More in Features
This is the end of the two-state solution
Indian women target of a vicious campaign
Target the companies that pollute most
Turkey must take the lead role to end conflict in Syria
Attempts to remake Eden are dangerous
More in Columns
Get Top news by E-mail.
Copyright � 2012 Muscat Press & Publishing House SAOC. All rights reserved. Times of Oman is not responsible for the content of external internet sites.
For reprint rights contact:
TOO Online Editorial