MUSCAT, AUG 30
The Ministry of Economy (MoE) affirmed that the implementation of the economic diversification strategy; and financial and economic sustainability initiatives and programmes have achieved increasing results in consolidating investment confidence in the Sultanate of Oman and enhancing its position as an attractive investment destination in accordance with international best practices.
The Ministry noted that the Sultanate of Oman has made significant progress over the past years in implementing Oman Vision 2040, improving financial stability indicators, reducing public debt, raising the sovereign credit rating to investment-grade, maintaining good momentum for national economic growth and enhancing the performance of non-oil sectors.
It stressed that Oman has demonstrated a serious commitment to implementing initiatives and policies that stimulate investment and developing legislation regulating the business environment. This, in turn, will contribute to the continued improvement of the economy's competitiveness indicators and enhance the attraction of quality investments to the sectors targeted in the economic diversification strategy.
The Ministry emphasised that enhancing the efficiency and performance of the financial sector and the capital market represent a fundamental pillar for continued progress in financial and economic sustainability efforts and initiatives. This can be achieved by boosting the country’s investment appeal, strengthening the role of the private sector, supporting the growth of small, medium and emerging enterprises; and increasing and diversifying the financing options available to these enterprises. This is part of national programmes aimed at accelerating the implementation of economic diversification targets during the Tenth Five-Year Development Plan 2021-2025.
According to the Ministry, the National Programme for Fiscal Sustainability and Financial Sector Development (Estidamah) has helped achieved key targets in its support for the Muscat Stock Exchange, placing it on a path that keeps pace with the positive growth of the Omani economy and enhancing the bourse's efforts to upgrade to an emerging stock exchange and expand its role in financing the private sector and entrepreneurs.
The Ministry explained that Estidamah initiatives contributed to advancing the implementation of the Muscat Stock Exchange's strategy to diversify the financial instruments available to investors, increase market depth and enhance the exchange's performance by creating activities such as market makers and liquidity providers, which contributed to increasing trading volumes.
The initial public offerings (IPOs) issued under the Oman Investment Authority's share allocation programme have validated the steady progress made in efforts to empower the private sector and provide investment opportunities in promising sectors such as oil and logistics. These IPOs have been successful in increasing the total market value of securities listed on the MSX and attracting new investments. This underscores confidence in the investment prospects of the Omani capital market and the promising opportunities it offers.
The recent rise of the MSX’s Main Index above the 5,000-points mark represents a new positive development that reflects the strengthening of the Omani capital market's depth, improved liquidity levels and investor confidence in the national economy. This development is a result of efforts and initiatives to enhance financial and economic stability and expand the role of the financial sector in implementing the financial and economic sustainability goals of Oman Vision 2040, it said.
Furthermore, it noted that the implementation of the capital market incentive programme within the "Sustainability" framework confirms the Omani government's commitment to continuously enhance the investment environment, stimulate investment, empower the private sector and increase its role as a driver of growth and job creation. This is achieved through the incentive package the programme offers to private sector companies wishing to benefit from the programme and list on the Muscat Stock Exchange.
The Ministry explained that the establishment of the ‘Promising Companies Market’ (also known as ‘Alternative Investment Market), which aims to stimulate the listing of small and medium-sized enterprises, private and family businesses on the stock exchange, represents an important qualitative leap that complements the strategic programmes that have been implemented and are being implemented during the tenth five-year plan. These include integrated programmes for financing and developing the investment system, stimulating private sector contribution in the field of artificial intelligence and advanced technologies, upgrading and modernisation programmes to support national industry, expanding specialised incubators in the governorates, establishing an academy for entrepreneurship, establishing a special economic zone for small and medium-sized enterprises; and other economic programmes and policies that aim to empower and support the private sector and entrepreneurship institutions and achieve the priorities of sustainability, economic diversification and investment; and national employment targets. — (ONA)
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