Muscat – The launch of the Alternative Investment Market (AIM) regulation is set to make green financing more accessible to small and medium enterprises (SMEs) in Oman, through lower entry barriers and tailored listing conditions designed to support growth, innovation and sustainability.

Issued by the Financial Services Authority (FSA), the regulation establishes a secondary market within the Muscat Stock Exchange (MSX), enabling SMEs, start-ups and family-owned businesses to raise capital within a simplified regulatory framework. It aims to enhance transparency, strengthen investor confidence, and support the diversification objectives outlined in Oman Vision 2040.

The regulation aligns with the FSA’s national roadmap to harmonise the non-banking financial sector with principles of green and sustainable finance. This 36-month plan integrates global best practices with Omani frameworks, ensuring a structured and credible transition towards green finance, FSA said in a press statement.

Supporting Oman’s commitment to achieving net-zero emissions by 2050, the FSA has also clarified the scope of green and sustainable finance under the Bonds and Sukuk Regulation. Article 98 of the regulation obliges any issuer or beneficiary seeking to issue green or sustainable bonds or sukuk to outline, in the prospectus, the objectives of such instruments. These may include preserving the environment and natural resources, rationalising energy consumption, promoting renewable energy, reducing greenhouse gas emissions, and pursuing other sustainability goals. This links disclosure requirements for capital-raising instruments with Oman’s broader net-zero framework, ensuring coherence, transparency and credibility.

To further enhance investor trust, the regulation requires companies to adopt the International Financial Reporting Standards for SMEs (IFRS for SMEs), offering simplified reporting while maintaining global benchmarks of transparency and accountability. By applying this framework, Omani SMEs can attract investors, lenders and business partners, with the assurance that their financial reporting meets internationally recognised standards.

At its core, the AIM aims to unlock financing opportunities for SMEs that may struggle to secure funding through traditional banking channels. By reducing entry barriers and tailoring listing requirements, the regulation allows start-ups, technology ventures and emerging companies to attract investment and scale operations.

This flexibility is particularly important for entrepreneurs in digital services, clean energy, logistics, and advanced manufacturing – sectors central to Oman’s green and digital transition, where access to growth capital is critical.

The regulation also complements Oman’s broader drive into sustainable finance. By embedding transparency, governance and disclosure requirements, it encourages businesses in renewable energy, circular economy initiatives, and eco-friendly technologies to access market funding. With Oman committed to reaching net-zero emissions by 2050, the AIM is poised to become a hub for enterprises developing energy-efficient building materials, low-carbon transport solutions, and waste-to-energy technologies.

Beyond finance, the AIM promotes innovation. Its structure facilitates integration with fintech platforms, crowdfunding solutions, and digital investment tools, improving connections between investors and entrepreneurs. This opens the door to greater participation by venture capital funds, angel investors, and high-net-worth individuals seeking opportunities in emerging industries. SMEs also gain exposure to advanced financing methods shaping global markets, from tokenised assets to digital trading systems.

To balance accessibility with investor confidence, the regulation adopts a phased approach. Companies benefit from simplified reporting standards, reduced compliance costs, and clear listing options, whether direct or indirect. This allows businesses to enter the market according to their maturity and strategic needs, while gradually preparing them for eventual graduation to the main market with stronger governance and financial discipline.

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