MUSCAT - The Sultanate of Oman is accelerating capital-market reforms to deepen liquidity, broaden sector representation and secure an upgrade of Muscat Stock Exchange (MSX) from frontier to emerging market status, moves aimed at drawing foreign inflows and aligning the bourse more closely with the real economy, according to Abdullah bin Salim al Salmi, Executive President of the Financial Services Authority (FSA).

Speaking exclusively to the Observer, Al Salmi highlighted the MSX’s upbeat performance, underpinned by strong primary issuances of more than RO 4 billion in 2024, averaging RO 2.1 billion annually since 2022. This wave of new listings and offerings expanded the retail investor base by nearly 97% from its 2022 baseline and strengthened MSX representation in energy, logistics and financials, though gaps remain in mining, agriculture and fisheries, tourism, healthcare and education.

Abdullah bin Salim al Salmi, Executive President — Financial Services Authority (FSA).

To support fair pricing and continuous trading, the FSA has introduced market makers and liquidity providers; and is encouraging an active role for retail investors alongside long-term institutions. Liquidity is inseparable from robust disclosure and timely information flows, he emphasised.

Product diversification is also advancing. The framework now accommodates green and sustainable bonds and sukuk, plus ESG-linked bonds, with derivatives and futures under study as ecosystem readiness improves. The regulator’s role is to enable issuance while keeping rules “open and responsive” to demand.

The MSX is already considered one of the region’s most open markets and is courting foreign investors accordingly. Classification work towards emerging market status is coordinated among the FSA, MSX, Ministry of Finance and the Oman Investment Authority to enhance liquidity, diversify products and raise international visibility, Al Salmi said.

At the policy level, diversified, deep and liquid markets represent the cornerstone of efficiency, measured by the ability to reflect true economic value, underscoring why disclosure, information quality and active participation remain non-negotiable, he added.


2025 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).