Oman’s Capital Market Attracts Investors from 135 Nationalities
In a remarkable surge, Oman’s capital market has seen a significant increase in foreign investors, with participants now coming from 135 nationalities, as opposed to 67 in 2023. This growth is fueled by favorable policies such as low tax rates and flexible capital transfer options.
Foreign Investments on the Rise
Newly released statistics from the Muscat Stock Exchange (MSX) show a 19 percent increase in foreign investments as of May, with participants hailing from the Gulf Cooperation Council, Arab countries, and beyond.
Focus on Industrial and Service Sectors
According to MSX data, foreign investments are primarily focused on the industrial and service sectors, accounting for 15.8 percent and 15.7 percent respectively. Gulf investors show particular interest in the services sector, while non-Gulf Arab investments are more directed towards the financial sector.
Market Growth and Trading Activity
The first half of the year has witnessed significant growth in trading activity at MSX, with trading volumes surging to 3.1 billion securities by the end of May, surpassing 517 million Omani rials ($1.3 billion) in value. Executed transactions have also increased, reflecting heightened market participation and liquidity.
Market Expansion and Transparency
MSX is expanding its database on listed companies to enhance transparency and advocate for disclosure standards. Efforts are also underway to encourage government and family-owned businesses to transition into privately held entities, enriching market diversity and investment opportunities.
Positive Market Sentiment
The market capitalization of MSX-listed public joint-stock companies reached 9.4 billion rials by May’s end, reflecting positive sentiment and investor confidence in the market’s growth potential. Market indices have shown growth, with successful IPOs boosting market liquidity.
Oman Investment Authority’s Role
The Oman Investment Authority (OIA) has reported a 7.4 percent year-on-year increase in Oman’s sovereign wealth fund assets, highlighting its pivotal role in fostering economic growth and stability in the country. The OIA plans to offer additional companies for public subscription in the coming years, further boosting investor confidence in MSX.
Future Outlook
Looking ahead, MSX aims to strengthen its regulatory framework, expand investor outreach initiatives, and create an environment conducive to sustainable economic growth. By maintaining its reputation as a gateway for international investment and adhering to global best practices, MSX aims to remain a leading choice for investors interested in Oman’s dynamic capital market.