MUSCAT, OCT 13
An international asset manager described as one of the world’s ten largest is preparing to invest in Oman after approximately 18 months of engagement, signalling growing institutional interest as the country’s stock exchange seeks long-term investment.
Gary Ballard of Oman Investment Bank told ConFEAS 2026 in Muscat on Tuesday that the institution had indicated it was making arrangements to invest during a meeting in London last month with representatives of a major Omani company.
Neither the asset manager nor the company was identified. Ballard did not disclose the size, timing or form of any prospective investment.
The disclosure highlighted a wider challenge discussed at the conference: converting international interest in Oman into sustained participation in its capital market.
Ballard said attracting major institutional investors required continued engagement and a clearer understanding of the country’s economic prospects, alongside improvements in market liquidity.
International investors were interested in both individual securities and the broader economic development of the countries in which they invested, he said.
For Oman, that meant providing investment opportunities reflecting a wider range of economic activity.
Although banking and energy companies offered established opportunities, Ballard said additional listings in consumer-related businesses and technology could broaden the market’s appeal to international institutions.
Liquidity remained a central consideration, but he cautioned against assuming that trading concentrated in a relatively small number of companies was necessarily a weakness.
For large investors, shares with sufficient trading activity could provide a practical entry point into a market where other securities were less actively traded.
Ballard also highlighted the importance of reducing operational obstacles associated with trading, settlement and transaction funding.
International portfolio managers, he said, should be able to concentrate on investment decisions rather than the procedures needed to execute transactions.
The distinction between market access and sustained investment was also emphasised by Radu Hanga, Chairman of the Federation of Euro-Asian Capital Markets (FEAS) and Chairman of the Board of Governors of the Bucharest Stock Exchange.
Hanga said closer connections between exchanges could improve access but would not, by themselves, create lasting liquidity.
He stressed the importance of corporate governance, reliable market information, investor education and confidence in financial institutions in attracting and retaining investment.
The discussion comes as Oman seeks a possible upgrade in FTSE Russell’s market classification system.
Oman has been placed on the index provider’s Watch List for potential reclassification from Frontier to Secondary Emerging market status, with the next country-classification update scheduled for April 2027.
Watch List inclusion is a step in the assessment process and does not confirm an upgrade or guarantee additional investment flows.
Muscat Stock Exchange Chief Executive Officer Haitham al Salmi also highlighted the importance of cooperation between exchanges and timely, carefully considered decisions in responding to changing investor requirements.
He cited a cross-border trading platform connecting more than eight markets as an example of efforts to improve access while allowing brokers to operate within their respective regulatory frameworks.
The conference, organised by FEAS and hosted by Muscat Stock Exchange, brought together exchange executives, investment institutions and market specialists to examine connectivity, technology and investor participation.
The prospective investment described by Ballard offers an indication of international interest. Its significance for Oman’s capital market will depend on whether those preparations result in actual investment and broader institutional participation.
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