In general, contributions are considered the backbone of the social insurance and pension systems and the most important source of financing.
To ensure continuity of such systems in performing their functions and liabilities towards the insured persons under the relevant law, the systems are obliged to invest these collected contributions in order to be able to meet its current and future obligations and to maintain the financial strength of such insurance systems, This can only accomplished through proper investment of such funds and through ensuring certain profits and liquidity and keeping such funds away from risks. Under the Social Insurance Law, investment of PASI funds is one of the most important competences entrusted to the board of directors. To this end, an investment committee that is attached to the board was formed to look after all aspects of PASI investment. The Royal Decree No (31/96), its amendments and regulations have set out the rules regulating PASI investment.
The investment committee meets on a regular basis or as and when required take urgent investment decisions through (circulation). However, It is to be noted that PASI has a dedicated investment department with experienced and qualified staff.
The Investment Department solicits and analyzes investment opportunities and studies before submitting the same with detailed information, sufficient analysis, grounds for investments and recommendations to the Investment Committee to help it take the appropriate investment decision in accordance with the investment regulations, instructions of the board of directors and its approved investment policies. The Investment Department implements the investment decisions, follows up the different investment-related matters and submits periodical analysis to the committee in order to monitor the investment performance.
Types of Investment Assets
The Authority invests its funds inside and outside Oman by distributing its investments locally and externally within specified proportions and diversified investment assets with an aim to distribute the risks and increase the returns.
The Authority Invests in the Following Investment Assets
Shares of joint-stock companies (Locally and externally)
Government and corporate bonds (Locally and externally)
Alternative investment instruments (Locally and externally)
Short-term financial instruments (Locally and externally)
Real estate investments (Inside Oman only)
Investment proportions are distributed to various assets based on instructions already set out in the investment executive regulation to always ensure striking balance between soundness, profitability and liquidity of investment in medium and long terms. Finally, the Authority adopts the latest financial and investment automation systems in its investment, financial and accounting operations. The Investment Department may show the Authority's investment performance for any specific period including the accurate individual details.