07 October 2015
Muscat: Gulf states are proceeding with their plans to integrate stock markets in a move to attract foreign portfolio investments.
The ongoing plans include uniformity in rules, regulation and practices in all GCC bourse. "It needs to be worked out," Abdullah Salim Al Salmi, executive president of the Capital Market Authority, told Times of Oman'.
The six-member GCC states are aiming for common listing of shares and common brokers for all markets, he added, on the sidelines of a function to sign a memorandum of understanding (MoU) with Kuwait stock exchange here on Wednesday.
Al Salmi said that a meeting in Doha last month took several decisions and the countries have decided to meet within every six months to see the progress.
Oman and other Gulf states have signed a multilateral MoU to achieve uniformity in laws and regulations in GCC stock markets last month. This will also help to enhance economic integration among GCC countries.
GCC Securities Commissions have signed a multilateral memorandum of understanding, which would act as regulatory framework in a move to enhance the relations among such bodies to facilitate exchange of information.
"We hope at the end of the day, there will be a common GCC market, integrated and well connected," Al Salmi said, adding; "Having small markets is not appealing for foreign investors."
Agreement with Kuwait
Al Salmi and Dr NayefFalalf Al Hajraf, chairman of the Board of Commissioners of the Capital Market Authority of Kuwait, have signed a memorandum of understanding for exchange of information and mutual cooperation on Wednesday in the presence of Ahmed Saleh Al Marhoon, director general of Muscat Securities Market, Abdullah Ahmed Al Nabhani, director general of Muscat Clearing and Depository Company and Ahmed Said Kashob, chairman of Oman Securities Association.
The aim of the MoU is to enhance cooperation between the two authorities to develop the legislative infrastructure of the securities markets and to benefit from the experiences of both countries on investment instruments, regulations and clearing and depository systems and the practices in the regulation of the companies operating in securities and promotion of the brokerage profession.
The MoU includes a number of clauses on exchange of information to enhance investor protection and the integrity of the stock markets by providing a framework for cooperation and upgrading the mutual understanding based on exchange of information and professional expertise between the two countries.
They agreed on exchange of information and mutual cooperation, encouraging cooperation between capital market institutions including stock markets, clearing and depository institutions, financial services companies and dispute resolution according to the applicable laws and regulations.
The MoU included problem solving for investors in securities in addition to cooperation in enforcement of the laws and legislations pertaining to securities and other investment instruments, advices and cooperation in supervising the markets, clearing and depository systems, monitory compliance and application of high standards of fairness, integrity and professional conduct.
Sukuk issue
Oman's OMR200 million worth sovereign sukuk issue will help develop a benchmark for such issues, besides enabling Islamic institutions to park their excess funds.
Oman government's maiden sukuk issue will open for subscription between October 8 and 22.
"It is an important issue for two reasons - one is that it will help to have a benchmark for the market. Also, it will help to develop an yield curve for corporates to bench mark rate of returns," said Abdullah Salim Al Salmi, executive president of the Capital Market Authority. It will also provide an alternative investment avenue. "We need to diversify our market by introducing new financial instruments. We hope to see frequent issues of sukuk and we expect a good response."
Muscat: Gulf states are proceeding with their plans to integrate stock markets in a move to attract foreign portfolio investments.
The ongoing plans include uniformity in rules, regulation and practices in all GCC bourse. "It needs to be worked out," Abdullah Salim Al Salmi, executive president of the Capital Market Authority, told Times of Oman'.
The six-member GCC states are aiming for common listing of shares and common brokers for all markets, he added, on the sidelines of a function to sign a memorandum of understanding (MoU) with Kuwait stock exchange here on Wednesday.
Al Salmi said that a meeting in Doha last month took several decisions and the countries have decided to meet within every six months to see the progress.
Oman and other Gulf states have signed a multilateral MoU to achieve uniformity in laws and regulations in GCC stock markets last month. This will also help to enhance economic integration among GCC countries.
GCC Securities Commissions have signed a multilateral memorandum of understanding, which would act as regulatory framework in a move to enhance the relations among such bodies to facilitate exchange of information.
"We hope at the end of the day, there will be a common GCC market, integrated and well connected," Al Salmi said, adding; "Having small markets is not appealing for foreign investors."
Agreement with Kuwait
Al Salmi and Dr NayefFalalf Al Hajraf, chairman of the Board of Commissioners of the Capital Market Authority of Kuwait, have signed a memorandum of understanding for exchange of information and mutual cooperation on Wednesday in the presence of Ahmed Saleh Al Marhoon, director general of Muscat Securities Market, Abdullah Ahmed Al Nabhani, director general of Muscat Clearing and Depository Company and Ahmed Said Kashob, chairman of Oman Securities Association.
The aim of the MoU is to enhance cooperation between the two authorities to develop the legislative infrastructure of the securities markets and to benefit from the experiences of both countries on investment instruments, regulations and clearing and depository systems and the practices in the regulation of the companies operating in securities and promotion of the brokerage profession.
The MoU includes a number of clauses on exchange of information to enhance investor protection and the integrity of the stock markets by providing a framework for cooperation and upgrading the mutual understanding based on exchange of information and professional expertise between the two countries.
They agreed on exchange of information and mutual cooperation, encouraging cooperation between capital market institutions including stock markets, clearing and depository institutions, financial services companies and dispute resolution according to the applicable laws and regulations.
The MoU included problem solving for investors in securities in addition to cooperation in enforcement of the laws and legislations pertaining to securities and other investment instruments, advices and cooperation in supervising the markets, clearing and depository systems, monitory compliance and application of high standards of fairness, integrity and professional conduct.
Sukuk issue
Oman's OMR200 million worth sovereign sukuk issue will help develop a benchmark for such issues, besides enabling Islamic institutions to park their excess funds.
Oman government's maiden sukuk issue will open for subscription between October 8 and 22.
"It is an important issue for two reasons - one is that it will help to have a benchmark for the market. Also, it will help to develop an yield curve for corporates to bench mark rate of returns," said Abdullah Salim Al Salmi, executive president of the Capital Market Authority. It will also provide an alternative investment avenue. "We need to diversify our market by introducing new financial instruments. We hope to see frequent issues of sukuk and we expect a good response."
© Times of Oman 2015
