The Capital Market Authority, Sultanate of Oman (CMA) under the leadership of the Executive President, His Excellency Abdullah Salem Al Salmi, had approved on 3 March 2022 the licensing of the 1st global crowdfunding platform operator, Ethis Investment Platform L.L.C., to be established in the Sultanate of Oman. It is also the 1st Islamic global crowdfunding platform in Oman.
This 1st approval came after the CMA had recently issued the new Rules on Crowdfunding Platforms on 21 November 2021. Since then, the CMA had attracted overwhelming interest from both international and local crowdfunding fintech players, as the new regulation had been made very facilitative and allows cross-border investments.
With the new regulation, the CMA will be regulating all crowdfunding activities for companies in Oman, including donation-based, rewards-based, equity-based and Peer To-Peer (P2P) financing.
The crowdfunding platform initiative by the CMA aims to provide an alternative financing platform for companies, including small and medium-sized enterprises (SMEs), to raise funding directly from global and local investors without going through a financial institution intermediary, while enhancing financial inclusion by providing an easier financial access to all segments of society. In addition, it is in line with Oman’s Vision 2040 as an enabler to develop and diversify the economy, and attracting foreign investors into Oman.
This represents another major milestone for the CMA in developing the capital market and fintech area for the financial industry in Oman, as crowdfunding is driven by fintech which includes the usage of blockchain technology. It is also another milestone in the development of Islamic finance in Oman - since a key component of Shariah-based financing is enhancing financial inclusion to the society.
The Ethis crowdfunding platform will be operated by the Ethis global group through Ethis Investment Platform L.L.C. in Oman and will be offering both equity and P2P financing crowdfunding platforms.
The Ethis group has an equity crowdfunding platform licensed in Malaysia and a P2P financing crowdfunding platform licensed in Indonesia. Both are regulated by the respective securities regulator there. In addition, they have a donation-based global crowdfunding platform.
The CMA is also expecting to have a few more crowdfunding platform operators, both conventional and Islamic, to be established and licensed in Oman soon.
About Capital Market Authority (CMA) Sultanate of Oman
The Capital Market Authority (CMA) regulates and supervises the capital market and insurance sectors and acts in accordance with its strategic objects to promote the sectors and maximise domestic and foreign investors’ confidence to ensure the continued development of the institutions operating in the capital market and insurance sectors and diversifying their products and engaging the largest number of participants to achieve the greatest added economic value to the Omani economy. CMA was established by Royal Decree 80/98 issued on 9 November 1998 and commenced its duties on 9 January 1999. It is a government entity with juristic personality, financial and administrative independence and its board of directors is chaired by the Minister of Finance.
For further information about CMA, please visit cma.gov.om.
For media enquiries, please contact: Afiqah Abdul Aziz
Public Relation and Marketing Executive Ethis Global Sdn. Bhd
PR and Communications Glenreagh PR