Oman: Three OIA companies plan IPOs this year

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Muscat – Oman Investment Authority (OIA) is set to introduce Initial Public Offerings (IPOs) for three of its companies this year, a move aimed at invigorating Muscat Stock Exchange (MSX).

The announcement was made by Abdullah bin Salem al Salmi, Executive President of Financial Services Authority (FSA), at the authority’s inaugural press conference. The media meet follows Royal Decree No 20/2024 issued to establish FSA as a pivotal financial regulatory body.

Salmi highlighted the fact that the upcoming IPOs are expected to significantly enhance the dynamics of MSX, marking a key step towards deepening Oman’s capital markets.

He emphasised that the transition from Capital Market Authority to FSA was more than a mere name change; it reflects the broader responsibilities and sectors now under its purview.

In a statement, FSA outlined the structural and operational benefits anticipated from its establishment. Structurally, the authority seeks to better integrate Oman’s financial sector into the national decision-making framework, bolstering the investment climate for economic diversification. This includes fostering the private sector, encouraging investments, supporting employment initiatives, and enhancing international cooperation.

Operationally, the focus is on augmenting the authority’s regulatory and supervisory functions, developing national expertise in specialised financial sectors and attracting young talent. This approach is aligned with Oman Vision 2040, aiming to fortify investor protection, boost market confidence and achieve economic inclusivity.

FSA’s regulatory framework is built on three main pillars designed to oversee the non-banking financial sector in Oman. These include enhancing the protection of investor rights, fostering confidence in the market and ensuring the financial stability of the sectors under its supervision. The framework is devised to meet the latest international principles and standards, ensuring the efficiency, risk management and crisis handling capabilities of the sectors it oversees.

Salmi also touched upon the significant role of transferring the accounting and auditing offices to the FSA’s jurisdiction. This move is intended to bolster the authority’s effectiveness in executing its responsibilities across various financial sectors. An executive plan is currently being developed to inventory these offices and to reassess the laws regulating these, further strengthening Oman’s financial infrastructure and regulatory ecosystem.