FSA launches digital remote trading platforms

MUSCAT, MARCH 1

As part of its continuous efforts to enhance financial inclusion by facilitating access to financial services in the Omani capital market, the Financial Services Authority (FSA) has launched digital remote trading platforms for licensed brokerage firms. These platforms will serve as unified and integrated digital stations within each brokerage firm, streamlining investment processes in the capital market and making investments faster and more efficient. This initiative is expected to boost trading activity in the Muscat Stock Exchange, aligning with modern financial market regulations and adopting a methodology that enhances service quality, ensures data protection, and ultimately strengthens investor confidence.

Speaking exclusively to the Observer, Shaikh Abdullah bin Salem al Salmi, FSA Executive President, highlighted that the newly launched digital platforms will significantly ease market access for investors. Previously, challenges such as the necessity for personal connections could impede entry.

The launch event, organised by the Authority, was also attended by senior officials from capital market institutions in Oman. The event celebrated the launch of five digital platforms owned by Ubhar Financial Investments, United Securities, International Securities, Jabal Asset Management, and CFI Financial. This initiative was carried out in collaboration with key stakeholders, including the National Programme for Financial Sustainability and Sector Development (Istidama), the Muscat Stock Exchange, Muscat Clearing and Depository Company, and the Oman Credit and Financial Information Center (Mala’a).

In his opening speech, the FSA Chairman stated, “The announcement of these platforms marks a significant milestone and adds great value. It will facilitate access for individuals and institutions, regardless of the size of their investment portfolios, to the necessary services and procedures for entering the investment world in the Omani capital market through a unified and integrated station. This will help attract investments and enhance trading activity efficiently and effectively.”

Al Salmi explained that these digital platforms will serve as gateways for investment in the securities market, specifically in the Muscat Stock Exchange. Investors will be able to complete their investment procedures seamlessly by selecting the digital platform of a licensed brokerage firm. Through the platform, they can open an investor account, as it is directly linked to the systems of the Muscat Clearing and Depository Company. Additionally, the platform will automatically provide investor data by integrating with the Oman Credit and Financial Information Center (Mala’a).

These platforms will provide investors with a range of features designed to streamline the trading process. Investors will be able to book shares and other securities, ensuring they can secure their desired investments efficiently. They will also have the ability to place buy and sell orders seamlessly, facilitating smooth transactions within the market. Additionally, the platforms will enable secure financial transfers between investors’ bank accounts, investment portfolios, and the Muscat Clearing and Depository Company. This ensures that funds are properly allocated for purchases and, conversely, that proceeds from securities sales are seamlessly transferred back to investors’ accounts.

Al Salmi further emphasised that all licensed brokerage firms must complete the readiness of their electronic platforms by 2025 to ensure a comprehensive digital transformation in the Omani capital market. He highlighted that electronic integration among relevant institutions will facilitate this transition for brokerage firms. He also stressed that this initiative is not just a response to market demands but a necessity to strengthen investor confidence and attract new capital, positioning Oman as a competitive and advanced financial hub.

“Digital transformation is no longer an option; it has become essential for developing financial markets and enhancing competitiveness in the global investment landscape.” The Authority’s commitment to providing digital platforms to facilitate investment procedures aligns with one of its key strategic objectives—enhancing the performance of the capital market. This contributes to the priorities of Oman Vision 2040, which focuses on economic diversification, financial sustainability, innovation, and digital transformation.