MUSCAT, SEPT 20
Muscat Stock Exchange (MSX) is entering a new phase of development as improvements in liquidity, accessibility, investability and market infrastructure bring Oman progressively closer to the standards associated with Emerging Market status, according to its chief executive.
Haitham al Salmi, CEO of MSX, said the evolution of a capital market from Frontier to Emerging Market begins well before an international index provider formally changes its classification.
“A market begins to transform long before its classification changes,” Al Salmi said in an opinion piece published on September 16. “This happens gradually – as accessibility improves, liquidity deepens, governance standards evolve, the investable environment expands, and international investors increasingly view the market as part of the global investment opportunity set.”
His comments come amid growing attention to Oman’s potential progression towards Emerging Market classification following five years of capital-market reforms and development initiatives.
Al Salmi said MSX’s transformation has focused on modernising market infrastructure, improving investor accessibility, strengthening governance and disclosure, supporting liquidity, broadening the investor base and creating conditions conducive to new listings and investment instruments.
Recent analysis by Oman Investment Bank found that Oman currently satisfies five eligibility tests assessed by the institution in relation to potential FTSE Russell Emerging Market classification, including requirements concerning qualifying securities, investable market capitalisation, liquidity and qualitative market criteria.
Al Salmi cautioned that the assessment is independent and that any formal classification decision rests with the relevant international index provider.
Nevertheless, he said the findings illustrate how far the Omani market has progressed structurally, arguing that international classification should be viewed as the outcome of sustained market development rather than an objective in itself.
“International recognition is undoubtedly important. Ultimately, however, classification should be the result, and not the sole objective, of market development,” he said.
An Emerging Market upgrade could potentially raise Oman’s visibility among international institutional investors and broaden the pool of global capital tracking the market. Al Salmi noted that this process can begin even before formal reclassification as institutional investors monitor markets approaching international benchmarks.
MSX is consequently turning its attention towards the next stage of growth: attracting more listings, expanding sector representation, deepening liquidity, diversifying investment instruments and drawing greater volumes of long-term domestic and international institutional capital.
The exchange also sees a growing role for Oman’s capital market in connecting the Sultanate of Oman’s economic diversification programme with global investors, particularly as emerging industries and expanding companies seek capital to finance growth.
“It is not simply about moving from one classification to another,” Al Salmi said. “It is about building a capital market that reflects the scale of Oman’s economic ambitions.”
For MSX, he added, international recognition would therefore represent both validation of reforms already undertaken and a platform for a new phase of market depth, competitiveness and institutional participation.
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