BUSINESS REPORTER
MUSCAT, NOV 3
Oman’s Financial Services Authority is working with the Muscat Stock Exchange and brokerage firms to make it easier for foreign investors to trade, as the Sultanate of Oman seeks to attract more institutional capital and build its case for a potential market reclassification by FTSE Russell.
Ahmed al Mamari, Executive Vice President of the FSA, said at The Network Forum Middle East on Monday that Oman’s inclusion on the FTSE Russell Watch List marked progress for the exchange and the wider financial services sector. He said the market had made gains in meeting quality criteria, while increasing its size remained a priority for any potential reclassification.
The regulator is working with the Muscat Stock Exchange, Muscat Clearing and Depository and brokerage firms to improve market access and align trading and post-trade processes with international practice. Al Mamari said foreign investors consider how easily they can enter and operate in a market when deciding where to invest. The authority is seeking to attract long-term institutional and strategic investors that can support market growth and stability, he said.
Speaking on a panel on regulatory development and market modernisation under Oman Vision 2040, Al Mamari said the authority was also looking at how to accommodate new financial products while maintaining investor protection and effective oversight.
“Innovation is evolving at an unprecedented pace, and our responsibility as regulators is to ensure that regulatory frameworks remain responsive and adaptable to these developments,” he said.
The FSA’s regulatory sandbox allows companies to test financial products and digital investment services under supervision. The trials help the regulator assess how new technologies work, identify potential risks and determine whether products are suitable for the Omani market.
Al Mamari said licensing and oversight requirements for financial technology start-ups should reflect the nature, scale and risks of their activities. He said applications to the sandbox, alongside developments in other markets, pointed to growing interest in technology-driven investment services.
Citing a recent visit to Cairo, he said digital brokerage platforms could broaden retail participation by reaching younger investors and people starting with smaller sums. He urged established brokerage firms and investment banks to develop digital services and work more closely with financial technology companies as new platforms change how customers access investment products.
The FSA is also working with regulators across the GCC and with financial regulators and exchanges in Egypt to share expertise and address common challenges. Al Mamari said that cooperation covered market infrastructure, cybersecurity, risk management and measures to combat money laundering.
He said the authority’s membership in the International Organization of Securities Commissions also helped it draw on international practice as it develops rules suited to local market conditions. The panel discussed how regulatory reforms could improve governance and transparency, strengthen investor protection and broaden the range of investment products available in Oman.
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