Oman Investment Authority preparing strategy for public listing of SOEs: MSX

A number of state-owned enterprises (SOEs) operating under the umbrella of Oman Investment Authority (OIA) – the integrated sovereign wealth fund of the Sultanate of Oman – are being prepped for eventual privatisation via a public listing on the Muscat Stock Exchange (MSX), according to the Omani bourse’s chief.

Haitham bin Salim al Salmi (pictured), CEO – MSX, said the proposed public listing of SOEs is part of a portfolio of initiatives being spearheaded by the stock exchange, in conjunction with OIA and other government agencies, to fuel the growth of Oman’s capital market over the next five years.

In an interview featured in ‘Enjaz & Eejaz, the quarterly newsletter of OIA, Al Salmi also pointed out that the Authority is set to play a pivotal role in strongly positioning the MSX – wholly owned by OIA – for growth over the coming years.

“No doubt, OIA will have a fundamental role in developing MSX; this was evident from day one once the market was transformed and MSX became an OIA company,” Al Salmi said.

“The goal is to rapidly improve MSX’s performance in line with developments in the securities market industry and the government’s goals for developing the Omani economy. All stakeholders within the sector coordinate with one another seamlessly, and OIA provides robust support and supervision.”

Commenting on the public listing of OIA-owned SOEs, he said: “OIA also prepared a comprehensive roadmap for converting SOEs into public stock companies listed on MSX. We saw the first signs of how successful this would be when OIA announced the first batch of divested assets. From here, we can lay the groundwork for a strong securities market with diversified instruments. The market exists to serve investors and enhance the role of the private sector in service of the Omani economy.”

Importantly, the process of listing of four OIA-affiliated entities on the MSX via Initial Public Offerings (IPOs) will commence during the current quarter, Al Salmi explained.

“These companies operate in numerous and diverse sectors; two of them are in the energy business under OQ Group, the third is an industrial company and a fourth is a real estate company. Energy Development Oman (EDO) is coordinating with MSX to plan for the IPOs. Moreover, MSX is still working to find incentives for family-owned businesses to go public and list shares on MSX,” he stated.

Since its transformation, by Royal Decree, into an OIA-owned company, the Omani bourse has notched up a number of successes that attest to its vigorous orientation into a commercially-driven enterprise with a mandate to power the growth of Oman’s capital market and the wider economy.

Most notable among these initiatives is the adoption of a measure to allow up to 70 per cent ownership of publicly listed companies. Additionally, the MSX has established a new mechanism, which calculates the closing prices of listed companies. It is also working to establish a department for ESG, diversification, and integration, while also coordinating with other Gulf countries to produce a consolidated guide for these practices.

Furthermore, efforts are under way to establish a dedicated securities market for SMEs, said Al Salmi. Besides, the bourse is finalising rules and agreements regulating activities of market makers and liquidity providers. It is also launching three new indicators for the total returns of the primary sectors: Finance, Industry, and Services, he added.