Oman pushes markets to help fund local growth

MUSCAT, NOV 11
Oman’s capital market must expand its role in financing projects and business growth, the Financial Services Authority (FSA) said, as trading on the Muscat Stock Exchange (MSX) exceeded RO 10.29 billion in the first ten months of 2026.
Market capitalisation reached RO 38.59 billion, according to figures highlighted by the authority alongside remarks by its Executive President, Abdullah bin Salim al Salmi, at the Ubhar Capital Investment Dialogue 2027.
Al Salmi said stronger financial intermediaries, diversified investment products and broader investor participation were needed to channel savings into long-term investment and strengthen the market’s contribution to economic growth.
“We need to see the market used as a means of financing for projects,” he said.
Recent listings, market makers and liquidity providers had improved trading conditions, but the next phase should encourage businesses to raise fresh capital, including for green projects, rather than primarily allow existing shareholders to sell stakes.
Bonds and sukuk could help finance investment in the Sultanate of Oman, alongside equity offerings, he said, broadening funding options in an economy heavily reliant on banks.
The FSA also identified financing for small and medium enterprises, an expanded range of investment products and greater investor participation as priorities supporting Oman Vision 2040.
Al Salmi said the securities framework required investment banking activities to be housed in entities separate from commercial banks, although commercial banks would be permitted to own those businesses fully.
Strengthening investment banks, brokers, asset managers and other intermediaries would help connect companies seeking financing with investors. The authority highlighted market liquidity and transparent pricing as essential to investor confidence and market efficiency.
Haitham bin Salem al Salmi, Chief Executive Officer of the Muscat Stock Exchange (MSX), said liquidity remained central to attracting investors and persuading more private companies to list.
“Investors think of exit strategy before they enter any market,” he said.
Higher trading activity and reliable price discovery could improve valuations, making listings more commercially attractive to business owners. Recent offerings had demonstrated the availability of domestic capital to support new issues, he said.
The exchange was working to attract additional investors through roadshows, improve accessibility and develop products, including exchange-traded funds and derivatives.
Market makers should support liquidity and draw new participants into trading, with the longer-term objective of generating broader, organic market activity, he added.
Hamed Ali, Chief Executive Officer of Dubai Financial Market, said the proportion of shares available for public trading deserved close attention as Oman developed its market.
Expanding that free float could influence investor participation, index inclusion and minority shareholders’ position. IPO pricing also needed to support sustainable trading after a flotation.
“It’s important for investors, it’s important for issuers, and it’s important for the market to have a realistic entry point,” Ali said.
Chirag Shah, Senior Executive Advisor at the International Financial Centre of Oman, said regulatory certainty, a familiar legal framework and access to talent would help attract international financial businesses.
“Trust, credibility, stability is going to be very important,” Shah said.
Oman’s international commercial relationships could help connect investors and businesses across markets, while developing financial and professional skills would support the centre’s growth, he said.
Mansoor Malik, Founder and Senior Partner at Al Busaidy, Mansoor Jamal & Co, said listings could help family businesses manage succession and preserve enterprises across generations.
“This is a very great way to provide for succession,” he said.
Malik suggested examining whether disclosure and prospectus requirements could be proportionate to company size while addressing concerns that deter family businesses from listing.