Avoiding physical GCC real estate and energy pays off for Oman’s Gheras

Oman’s Gheras Endowment Investment Fund has shown that avoiding the GCC’s crowded physical real estate and energy sectors even in non-conflict times could be a savvy move, as its AuM grew 163.05% year-on-year (y-o-y) in Q4 2025 from a focus on ports and other infrastructure.

Gheras’ total valuation expanded to OMR4.09 million (US$10.64 million) from OMR1.55 million (US$4.03 million) in the 12 months prior as it leveraged on its mixed assets base. The sharp ascent in AuM was anchored by a breakout performance in Q3 2025, during which Gheras posted a 10.4% return, more than doubling its 4.53% benchmark.

The Waqf fund’s growth fueled a wider expansion for Omani Islamic funds in 2025, with AuM reaching US$577.02 million as at the end of the year, equivalent to a near 150% y-o-y rise, according to the IFN Investor Funds Database.

Gheras’ portfolio consists of logistical and infrastructure assets that include Oman's ports and transport networks, technology and manufacturing interests that align with the Sultanate's industrialization goals and consumer goods’ investments that target the growing purchasing power of the region.

A core defensive component of its strategy is also to invest in GCC-issued sovereign and corporate Sukuk, which provide the fixed income-like returns to support social payouts needed for mosques, healthcare and education, while preserving capital for donors that utilize its temporary endowment option.

While Gheras was designed to diversify from owning physical buildings directly, it captures real estate yield through institutional-grade income-generating REITs. By investing in "paper" real estate across the GCC – specifically in high-yield commercial and industrial zones in Oman and the UAE – the fund maintains the ability to exit positions – a flexibility direct property ownership lacks. These strategies have become increasingly valuable in the aftermath of the Iran war, which has brought pressure upon physical real estate valuations and energy-related investments and deals in the GCC.