In a move to boost its economic growth and attract foreign investment, Oman’s regulators, led by the Capital Market Authority (CMA), are taking proactive measures to diversify funding sources through innovative avenues such as crowdfunding and virtual assets.
With the recent issuance of its crowdfunding framework and the licensing of nine crowdfunding platforms, Oman is paving the way for a new era of financial opportunities.
The CMA’s crowdfunding framework has garnered significant interest, demonstrated by the licensing of nine crowdfunding platforms.
Mayan al Asfoor, the country manager of Beehive Oman, during the IFN Oman 2023 forum, said, “Demand for crowdfunding is growing rapidly, outpacing the platforms’ ability to meet the needs.
This surge in demand can be attributed to several factors, including accessible regulations that are supportive of Islamic financing.”
For crowdfunding to operate in Oman, platforms must have a Shariah advisor, ensuring compliance while fostering growth.
In a report by IFN, one of the standout features of Oman’s crowdfunding framework is its allowance for cross-border fundraising and investments, a first in the region.
This feature enables crowdfunding platforms to attract investors from all around the world, making Oman an attractive hub for global investment.
Saleh al Tamami, the co-founder and CEO of Mamun, during the forum, highlighted this feature as a
key differentiator.
He emphasised that the ability to bring in investors globally and deploy funds within the regulatory
framework provides a significant advantage for the market.
Recognising the potential of digital assets, the CMA is working on finalising regulations for virtual asset service providers, aiming to introduce them before the year’s end.
This move is seen as forwardthinking and aligns with the growing interest in tokenisation and digital
assets within the financial industry. Kemal Rizadi Arbi, an expert/ advisor with the CMA, emphasised
the importance of maintaining investor protection while simultaneously creating a favourable environment for market growth and attracting foreign investors.
These developments represent a glimpse into Islamic Finance 3.0, where digital assets play a crucial
role.
While the energy-intensive nature of mining cryptocurrencies has raised concerns, experts at the IFN Oman Forum 2023 presented a sustainable case for digital assets. They explained that mining cryptocurrencies, such as Bitcoin, can help make renewable energy sources viable.
Companies engaged in Bitcoin mining act as reliable customers for excess electricity generated from renewable sources. This excess electricity can be utilised during peak demand periods, ensuring efficient utilisation of energy resources. The profits generated from mining activities can then be reinvested into renewable energy infrastructure, establishing a self-sustaining mechanism for both energy production and capital generation.
Lastly, Dr Khalid Tahhan, co-founder of Easy Coins, disclosed that the company is on the verge of closing a deal on a renewable mine site that will be launched in the near future.
This innovative project will leverage a steam-producing factory to generate power, creating a new revenue stream from the production of cryptocurrencies. The excess cryptocurrencies can be sold internationally, thereby reversing the concept of capital flight risk. By fostering local consumption and exporting surplus, Oman can strengthen its economic position and promote sustainability.
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