MUSCAT: The Muscat Stock Exchange (MSX) has more than doubled in market capitalisation since 2020, while average daily traded value has risen more than thirtyfold, according to MSX CEO Haitham al Salmi.
Speaking to CNBC on the sidelines of the Belt and Road Summit in Hong Kong, Al Salmi said reforms linked to Oman Vision 2040, a growing pipeline of initial public offerings and measures to deepen liquidity had transformed the performance and profile of the Omani market.
“If we take the base year of 2020, we are currently double the size in terms of market cap”, he said.
Daily trading value had increased from around $5 million to between $140 million and $150 million, he added, representing more than 30 times the level recorded at the beginning of the market’s expansion drive.
The improvement in liquidity had helped unlock the value of listed companies and supported stronger index performance. Al Salmi said the MSX index rose 28.5 per cent last year and had gained about 28 per cent year to date, making it the best-performing market in the Gulf Cooperation Council.
He attributed the gains to a series of market-development initiatives, including extended trading hours, the launch of the parallel AIM market and a programme of government-related listings that had attracted strong demand from domestic and international investors.
The recent initial public offering of Oman India Fertiliser Company (Omifco) was subscribed more than 18 times, demonstrating the depth of investor appetite for quality Omani assets, he said.
“We are not just creating liquidity; we are bringing value back to the Omani market and attracting the attention of international investors to Oman”, Al Salmi said.
Oman is also seeking to build stronger investment links with Asian markets. An Omani investment fund focused on China was established last year and the authorities are now looking to encourage capital flows in the opposite direction.
Al Salmi said MSX and its intermediaries were working on a proposed exchange-traded fund that would invest in Oman and the wider GCC and potentially be listed in Hong Kong or mainland China.
The initiative would require trading links and regulatory agreements between the relevant authorities, creating a platform through which Asian investors could gain exposure to Gulf markets.
Addressing concerns over regional geopolitical tensions, Al Salmi said Oman’s neutral foreign policy, relationships with neighbouring and international partners; and strategic location facing the Indian Ocean had helped insulate its economy and capital markets.
Recent tensions had not halted Oman’s IPO programme, he said, while logistics, oil and other sectors had continued to perform strongly.
The country’s stability had reinforced its position as a safe investment destination within the GCC, he added.
“The challenges are still running, but with challenges, opportunities appear”, Al Salmi said.
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