QASIM AL MAASHANI
MUSCAT, FEB 22
Muscat Stock Exchange (MSX) is working on a central counterparty (CCP) clearing model and securities lending and borrowing mechanisms as part of a 2026–2027 road map aimed at removing what it calls the key constraint holding back foreign allocations.
In an exclusive interview with the Observer, CEO Haitham bin Salim al Salmi said the main obstacle has “not been investor interest, but institutional allocability” — the ability of large global funds to deploy capital in a market that meets benchmark, liquidity and post-trade requirements.
Al Salmi said large mandates typically require sufficient liquidity depth, index eligibility and robust post-trade infrastructure, alongside execution capacity that can handle sizeable trades without excessive price disruption.
To address that, he said the exchange is working on implementing a central counterparty (CCP) model that would operate as an independent clearing entity, separate from the depository company, strengthening risk management and aligning the market with international best practices.
He added that MSX is also developing securities lending and borrowing mechanisms, arguing that as these structural elements mature, allocation barriers will diminish and the market can transition from an “opportunity set” to a more strategic portfolio allocation.
On listings, Al Salmi said expanding the investable universe remains a strategic objective, but noted that decisions on government divestments and privatisation are led by Oman Investment Authority and relevant stakeholders, while MSX’s role is to operate the regulated marketplace facilitating listing, trading and price discovery in line with international standards.
Over the next 12–24 months, he said MSX expects continued listing activity aligned with the national economic agenda, with an emphasis on governance and appropriate free-float levels that support active trading and institutional participation.
He said the exchange is also developing the Promising Companies Market as a pathway for firms seeking capital markets funding, but stressed that the focus is “not on the number of listings, but on their investability” and contribution to depth and transparency.
Looking to market tools, Al Salmi said MSX’s product sequence prioritises depth and resilience before complexity. The exchange is focused on broadening fixed income — including bonds and sukuk — to diversify funding channels and attract different investor classes.
He said exchange-traded funds will be introduced once liquidity conditions reach a “sufficient critical mass”, while derivatives remain a longer-term consideration tied to market maturity and liquidity stability.
Al Salmi framed the agenda as part of an institutional consolidation phase in which capital markets’ role in financing the economy under Oman Vision 2040 is expected to deepen.
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