A Blockchain Framework for Investment Authorities to Manage Assets and Funds

Abstract

Investment authorities are broad financial institutions that carefully manage investments on behalf of the national government using a long-term value development approach. To provide a stronger structure or framework for Investment Authorities to govern the distribution of funds to public and private markets, we have started research to create a blockchain-based prototype for managing and tracking numerous finances of such authorities. We have taken the case study of Oman Investment Authority (OIA) of Sultanate of Oman. Oman’s wealth is held in OIA. It is the organization that oversees and utilizes the additional capital generated by oil and gas profits in public and private markets. Unlike other Omani funds, this one focuses primarily on assets outside the Sultanate. The operation of the OIA entails a large number of transactions, necessitating a high level of transparency and administration among the parties involved. Currently, OIA relies on various manuals to achieve its goals, such as the Authorities and Responsibilities manual, the Investment Manual, and the Code of Business Conduct, among others. In this paper, we propose a blockchain-based framework to manage the operations of OIA. Blockchain is a part of the Fourth Industrial Revolution, and it is reshaping every industry. The main components of every blockchain are assets and participants. The funds are the major assets in the proposed study, and the participants are the various fund shareholders/recipients. The blockchain’s transactions are all safe, secure, and immutable, and it is part of a trust less network. The transactions are simple to follow and verify. By replacing intermediary firms with smart contracts, blockchain-based solutions eliminate any middlemen in the fund allocation process.