MUSCAT, APRIL 10 - Pursuant to Royal Decree 5/2021 issued by His Majesty Sultan Haitham bin Tarik on January 5, 2021, an Omani closed joint stock company has now been established under the name of Muscat Stock Exchange SAOC (MSX), to takeover and undertake all activities and functions of the Muscat Securities Market (MSM). In accordance with the Royal Decree, all assets, liabilities, activities, rights and functions of MSM stand transferred and assigned to MSX. Muscat Stock Exchange SAOC will operate under the umbrella of Oman Investment Authority, established to provide financial solutions to the Sultanate’s diverse and growing economic demands. MSX with the support of OIA will work to increase Oman’s Foreign Direct Investments as well as help support MSX members to participate in the continued march of renaissance to find new avenues and instruments for the growth of Sultanate’s national economy.
The transformation of the market to a closed Omani joint stock company will enhance the investment development process, both by providing an effective platform full of opportunities for listing and trading securities, as well as supporting diversity in economic development plans and ensuring the sustainability of financial instruments. With this transformation, MSX aspires to take a leading role in regional as well international securities arena through various innovative initiatives aimed at developing the stock exchange with transparency, governance, improved companies performance, increased operational effectiveness and the issuance of new investment opportunities and instruments for the benefit of both local and international investors.
On this occasion, Shaikh Abdullah bin Salem al Salmi, Executive President of the Capital Market Authority, said the transformation of MSM into a joint stock company is a monumental step in the development of the Omani capital market. He also noted that today’s date will be recorded in the history as an importance milestone in Oman’s Capital Market journey.
The creation of MSX as an independent institution owned by the Oman Investment Authority is a step that represents a qualitative leap that shall bring upon us a new era of development followed by the developments in the entire economic framework of the Sultanate. This step is also in line with the global best practices of governance, which include providing exchanges with independent legislative structure in order for them to perform better and in a more professional and transparent manner, he said.
Mohammed bin Mahfood al Ardhi, Chairman of the Board of Directors of the Muscat Stock Exchange, said the new entity will work under the umbrella of the Omani Investment Authority as one of its companies, and this in turn will push the work process according to a commercial method aimed at raising the efficiency of operations in the Stock Exchange and applying the principles of governance. Horizons will also be opened to work with the agency to list companies from various economic sectors, and this will contribute to raising liquidity levels, increasing the stock market’s depth and its investment attractiveness.
Mulham bin Bashir al Jarf, Acting Deputy President —Investments at OIA, said the establishment of MSX under the OIA’s umbrella gives it greater empowerment to deliver on its mandate. MSX will benefit from the investment experience that OIA currently entails. In addition, with its vast investment portfolio and connections across the board, OIA will help increase MSX’s reach and support the growth of the market necessary for its sustainable development. Moreover, being the owner of State-Owned Enterprises (SOEs), OIA can contribute to the growth of MSX by perhaps preparing SOEs for future public offering and increase the depth of local capital market.
Oman Observer is now on the WhatsApp channel. Click here
