Muscat – Muscat Clearing & Depository Company SAOC (MCD) has announced the implementation of a T+2 settlement cycle for securities traded in Oman’s capital market. The new cycle will reduce the settlement period from three business days (T+3) to two business days (T+2) following the trade date, marking a key milestone in the ongoing development of the Sultanate’s capital market infrastructure and aligning it with widely adopted global standards.

The transition to the T+2 settlement cycle aims to enhance the efficiency and resilience of post-trade processes, while reinforcing the attractiveness of Oman’s capital market to regional and international investors. By reducing the settlement timeframe, MCD aims to lower counterparty and settlement risks, accelerate capital turnover, and improve operational efficiency for market participants on the Muscat Stock exchange.

The new settlement cycle will be applied to transactions executed in the Omani capital market across all listed securities on the Muscat Stock Exchange —including equities, bonds, sukuk, and funds—effective from the trading day of 1 September 2026, following extensive coordination with market participants and stakeholders.

Muscat Clearing & Depository Company (MCD) highlighted that the initiative forms part of a broader strategy to modernize the operational framework of the market and ensure that its infrastructure remains aligned with evolving international standards. Many leading exchanges and financial markets worldwide have adopted the T+2 settlement cycle to enhance transparency, strengthen market stability, and improve efficiency in securities trading.

The move will also improve market liquidity by enabling investors to access their funds more quickly following a transaction. Faster settlement cycles can support increased trading activity by reducing the time required to complete transactions and allowing investors to redeploy capital more efficiently.

Mohamed bin Said Al Abri, Chief Executive Officer of Muscat Clearing & Depository Company, stated that the transition to the T+2 cycle follows comprehensive preparation across the entire market ecosystem.

“The implementation of the T+2 settlement cycle comes after the approval of the legal framework by the Financial Services Authority, along with and extensive coordination with brokers, custodians, clearing members, financial institutions, and investors,” he said.

“MCD has taken into account the regulatory aspects related to the settlement of custodian client transactions, particularly the Delivery versus Payment (DVP) procedures, taking into account time zone differences and the varying opening hours of financial markets.”

“These preparations included system enhancements, operational readiness assessments, and close collaboration with all stakeholders to ensure a smooth and seamless transition.”

“By enabling faster settlement, the T+2 cycle will accelerate capital turnover, increase trading activity and market liquidity, reduce margin requirements and operational costs, and support alignment with international standards for emerging market indices, thereby enhancing the attractiveness of the market to foreign investors.”

He further noted that the shorter settlement cycle helps mitigate various risks, including credit, market, and liquidity risks, while aligning the market with global financial trends.

The adoption of the T+2 settlement cycle reflects the continued commitment of Oman’s Capital Market institutions to strengthening the regulatory and operational framework of the market while supporting its long-term growth and competitiveness.

In recent years, Muscat Clearing & Depository Company (MCD) has implemented a number of initiatives aimed at enhancing market transparency, improving governance standards, and expanding investor participation. The introduction of the T+2 settlement cycle builds on these efforts and reinforces the Muscat Stock Exchange’s position as an attractive investment destination within the region.

Market participants have welcomed the development, noting that alignment with global settlement practices facilitates cross-border investment and improves the overall efficiency of trading and settlement processes. In this context, Muscat Clearing and Depository Company remains committed to closely tracking global advancements in depository, clearing, and settlement operations. This includes monitoring the international shift toward a shortened settlement cycle (T+1), an initiative anticipated to improve market efficiency and expedite transaction processing.

The transition represents another important step in the evolution of Oman’s capital market as it continues to adopt international best practices and modernize its financial market infrastructure to support sustainable economic development and strengthen investor confidence.

About Muscat Clearing & Depository Company SAOC (MCD)

Muscat Clearing & Depository (SAOC) Company was established pursuant to Royal Decree no. 82/98 issued on November, 25, 1998, mandating the formation of an entity responsible for securities depository and registration. MCD commenced operations on February 1, 1999 as an Omani closed joint-stock company, majority- owned by Muscat Stock Exchange along with banks, investment institutions and brokerage companies.