Oman to list 35 state-owned firms on MSX in next 5 years

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Muscat – Oman is planning to give a major boost to its capital market sector and make the sultanate’s stock exchange globally competitive and attractive for foreign investors.

Under a five-year plan, the sultanate’s government is planning to list as many as 35 state-owned companies on the Muscat Stock Exchange (MSX) with one or two oil sector firms likely to be listed during 2022, according to Haitham bin Salem al Salmi, CEO of MSX.

“There is a government plan to list 35 companies in the market over a period of five years. The plan is expected to begin in the second half of this year. We are focusing on listing one or two companies from the oil sector during the current year,” Salmi told CNBC Arabia in an interview on Sunday.

Meanwhile, Muscat Stock Exchange announced raising the limits of foreign ownership in the joint stock companies to 100 per cent. The move is a part of MSX’s completion of the technical requirements to be included in the Emerging Markets Indices.

Salmi said that Muscat Stock Exchange is working to fulfil all requirements for listing the MSX in the Global Emerging Market Indices.

“The decision to raise the percentage [limit] of foreign investment in the publicly listed companies is one of the most important steps on the road to be included in the global emerging market indices,” he said.

Foreign investors currently account for 14.5 per cent of total trading value on the MSX.
In the CNBC Arabia interview, Salmi explained that 98 per cent of the listed companies on the MSX have no limits for foreign investment in them. He stressed that the next step will be to work to boost the liquidity and market value of the MSX.

He also hinted about the possible announcement of a market maker and a liquidity fund in the current month or next month.

Oman’s banking sector accounts for 58 per cent of the Muscat Stock Exchange’s market capitalisation, which makes it the most attractive for foreign investors, the CEO of the Muscat Stock Exchange noted.