Oman's financial markets are poised for growth

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Muscat: Oman's financial markets are poised for growth as the government continues to invest in developing robust capital markets, Hussain Al Yafai, CEO of Standard Chartered Oman, said.

This investment will pave the way for Initial Public Offerings (IPOs), offering a boon for local and international investors. In 2023, the Muscat Stock Exchange (MSX) is expected to experience a surge in IPO activity, with three offerings linked to subsidiaries and affiliates of the Oman Investment Authority (OIA), a marked contrast to the two IPOs launched in 2022.

“The performance of the MSX is expected to sustain performance in 2023, driven by a suite of initiatives instituted by the regulator, the Capital Market Authority (CMA), and the stock exchange aimed at bolstering the capital market. Many of these measures stem from the updated Securities Law ratified in June 2022,” he added.

The Muscat Stock Exchange also aims to promote public offerings, diversify capital markets solutions, and encourage investment. It’s also looking to upgrade its market status and bring capital markets to the centre stage of economic development, he said.

Hussain Al Yafai said that to further promote growth, the MSX has also committed to finalising guidelines for regulating the actions of market makers and liquidity providers. Efforts are also underway to establish a specialised securities market for small and medium enterprises (SMEs). “This is a positive development and a reflection of the government's commitment to strengthening the financial system and promoting the growth of the capital markets. We expect the trend to continue and overall, the outlook is promising,” he added.

Standard Chartered Oman has been present in the Sultanate since 1968 and has been actively supporting Oman's economy ever since. Its operations in Oman form a core part of Standard Chartered Group’s strategic footprint in the Middle East Region, combining international expertise and capabilities with deep-rooted local knowledge and insight.

Hussain Al Yafai said, “Our role is to drive commerce and through our corporate, commercial and institutional banking we support clients with their transaction banking, financial markets, corporate finance and borrowing needs.”

“We also support their international banking needs across 59 markets, which include some of the world’s fastest-growing economies and most active trade corridors. The bank’s global network complements our strong local proficiencies, allowing us to support the growth and development of Oman's economy through innovative and efficient solutions,” he added.