Oman’s CMA targets further 10pc capital market, insurance sector growth in 2022

Steady performance: The total size of the capital market grew 9.14pc to reach a value of RO 22.09 billion last year, up from RO 20.24 billion in 2020

The Capital Market Authority (CMA) of the Sultanate of Oman has set its sights on achieving growth of at least 10 per cent in the capital market and insurance segments of its regulatory portfolio in 2022, building on healthy year-on-year growth witnessed by the two vital sectors of the Omani economy.

Additionally, the Authority has pledged to ramp up awareness of the importance of the two sectors among the local population in line with its goal to boost financial inclusion.

“The CMA will continue during the year 2022 to realise its objectives and indicators in line with the Oman Vision 2040 through its executive plan for the year 2022, which includes executive programmes and initiatives that endeavour to continue working in order to achieve the overall strategic objectives of the CMA, enhancing the level of financial sustainability, achieving a 10 per cent growth in the capital market and insurance sectors’ indicators, and raising the level of awareness in the two sectors among the population to 25 per cent of the total population by 2025,” Shaikh Abdullah bin Salem al Salmi (pictured), CMA Executive President stated in the 2021 Annual Report of the Authority.

The new targets are set to further bolster improvements in key performance indicators witnessed across both sectors in 2021. Notable is the growth of the capital market, which expanded 9.14 per cent to reach a value of RO 22.09 billion last year, up from RO 2024 billion in 2020.

Furthermore, a total of nine issuances (shares, bonds and Sukuk) were approved during the course of the year, amounting to RO 268.99 million after allotment and listing on Muscat Stock Exchange (MSX). These issuances led to an increase in the capital of public joint stock companies, enabling them to finance their investment needs, the Authority said.

Also during 2021, a new Real Estate Investment Trust (REIT) fund was successfully floated on the stock market. Oman Real Estate Fund was established via an IPO of 261.903 million units at an issue price of 102 Baisas per unit. At the end of the year, the total value of real estate assets managed by Oman Real Estate Fund, Aman Real Estate Fund and Izdihar Real Estate fund amounted to RO 133 million, it stated.

Commenting on the growing importance of real estate funds to local investors, the Executive President noted: “The CMA endeavours to transform the capital market into attractive environment for real estate funds, as this investment provides multiple options for investors, including allowing companies and individuals to invest in real estate and own investment units, in addition to allowing foreign investors to own investment units in the fund, which is an opportunity to attract foreign capital that contributes to supporting and invigorating the wheels of the economy.”

Significantly, investment funds saw their aggregate net profit surging 654 per cent to RO 44 million in 2021, reflecting the “recovery of the performance and profitability of investment funds after being affected by the pandemic”, the Authority said.

The insurance sector, also regulated by the CMA, registered positive growth as well in 2021. Al Salmi stated: “The sector’s contribution to the GDP was 1.45 per cent, and the gross direct premiums of insurance companies operating in the Sultanate of Oman increased by 3 per cent to RO 479.857 million coupled with a clear increase in the gross direct premiums of the health insurance class by 5.6 per cent to RO 163.866 million. The financial statements also indicated an increase in the number of insurance policies issued in general, life / family and health insurance by 8.6 per cent,” he added.