Muscat Stock Exchange to enhance status of Omani bourse

Royal Decree transforming MSM ushers a new chapter in the development of the Omani capital market, says Executive President

Shaikh Abdullah Salim al Salmi (pictured), Executive President of the Capital Market Authority (CMA), said the transformation of Muscat Securities Market into a closed joint stock company in the name of Muscat Stock Exchange Company SAOC is reflective of the wise leadership of His Majesty Sultan Haitham bin Tarik, while also underscoring efforts to improve regulation of Oman’s capital market.
Welcoming Royal Decree 5/2021, Al Salmi hailed the restructuring of the Omani bourse as an historic move that will elevate it to the standards of exchanges around the world, besides adding to its autonomy, professionalism and transparency.
“The transformation of the MSM into an independent company owned by the Oman Investment Authority (OIA) comes at a significant phase in the new renaissance and will contribute to achieving the goals of 2040 Oman Vision’’, he stated.
The new Muscat Stock Exchange offers adequate flexibility to manage its affairs easily and swiftly in decision-making while adapting to regional and international developments in the capital market domain, and introduction of new securities products and services that attract investors to support economic development, he said.
The capital market, said the Executive President, represents a key part of the financial and economic system of the country, where funding can be raised for private initiatives or public sector financing.
The stock market contributes to liquidity needed by investors and improves the allocation of capital to enhance the prospects of economic growth.
With countries around the world competing for capital to stimulate their national economies, a strong and well-regulated stock market will provide confidence to retail and institutional investors looking for investment opportunities.
Following the creation of a new company to own and operate the stock exchange, the CMA will now be free to focus on its primary responsibility as the regulator of the capital market.
The move effectively augments the autonomy of the CMA as recommended by international organisations such as the International Organization of Securities Commission (IOSCO), International Monetary Fund (IMF) and the World Bank (WB).
Citing the World Federation of Stock Exchanges, he said that stock exchanges around the world have been converted into companies in line with international best practice.
In the region, the bourses of Abu Dhabi, Dubai, Qatar, Bahrain, Saudi Arabia and Kuwait are also owned by their respective sovereign wealth funds in these countries, while some have been transformed into public joint stock companies after going public, an example being the Dubai Stock Exchange.