The capital market of the Sultanate of Oman continues to play a key role in meeting the huge financing needs of various economic sectors through long term financing instruments through shareholding or borrowing. The total value of government and corporate bonds and Sukuk was about RO 6.024 billion at the end of 2020. The sector contributes annually to RO 2 to 3 billion financing.
Mohammed Said al Abri, Vice President for Capital Market at the Capital Market Authority (CMA) said the capital markets are the main pillar in supporting the economic development worldwide further to being the underpinning in creating true partnership between the public and private sectors through furnishing financing for huge development and investment projects supporting the economy. Al Abri added the Omani capital market is ready legislative, and technology wise to finance huge productive projects to ensure the expansion of investment and lucrative investment opportunities for individuals and institutions.
Al Abri gave an opening speech in the seminar organized by the CMA in collaboration with the Public Authority for Special Economic Zones and Free Zones at the Sohar Free Zone under the these “The Capital Market and its Financial Options to Enhance Investment Activity” for the directors and managements of the companies operating at the Sohar Free zone as part of series of awareness seminar to be organized this year in the various overnorates.
Al Abri added that the laws and regulations governing the capital market have recently witnessed updates as well as expansion in licensing new products in line with the new fintech to meet the financing needs of the market, and that the CMA is dealing with adequate level of resilience to ensure protection of the rights of all stakeholders as well providing enhanced public confidence.
Al Abri emphasised that the seminar aims to extend communication bridges for exchange and sharing of views between the capital market institutions and the enterprises at the economic and free zones in the Sultanate of Oman through emphasising the role of the sector in ensuring the sustainability of the performance of the companies and providing long term financing further to creating true partnership with the private sector through unified policy and methodology in executing huge development project based mainly on financing from the capital market.
Haitham Salim al Salmi, Chief Executive Officer of Muscat Stock Exchange (MSX) referred to the gradual development of MSX and the roles it plays in financing economic development projects whether for the government sector or the private sector. He talked about MSX’s strategy that is derived from the main pillars namely the growth of the national economy, attractiveness of the stock exchange, the fintech, the commercial performance of the stock exchange and the development of the internal infrastructure of the stock exchange. He added such pillars are the foundation for a set of objects and initiatives to go ahead in the next five years in accordance with a work plan and timeline with the clear indices to assess the extent of success.
He added the key object we hope to achieve soon is to upgrade the MSX to an emerging stock exchange as per the ratings of the global rating agencies. To this end we will work to increase shares liquidity and the market value focusing on easing entry of foreign investments and adding trading features such as short selling and securities borrowing etc. to enable the MSX to upgrade to global indices. He emphasized the importance of listing the companies in the stock exchange and disclosures as well as environmental, social governance and corporate governance.
