A five-year strategy first unveiled by Muscat Stock Exchange (MSX) last year seeks to position Oman’s only bourse as a “world-class exchange with a global presence”, according to Haitham bin Salem al Salmi (pictured), CEO.
The official said in an interview published by The Business Year, a leading news portal, that the strategy envisions a portfolio of initiatives designed to boost liquidity, strengthen connectivity with regional markets, and enable the rollout of market enhancing measures.
“Through its five-year strategy, MSX is striving to improve the liquidity status in the market by focusing on the main priority of upgrading the market to the emerging markets list by satisfying the international indices (MSCI and FTSE) requirements which would facilitate capital inflows, widen investors’ base and hence increase market depth,” Al Salmi stated.
In support of this broader objective, the MSX has already eased all restrictions on foreign ownership limits for all listed securities, he said. It is currently working on the introduction of market making and liquidity providing services, among other measures to help stimulate market activities. They include initiatives to authorize, for the first time in the Sultanate of Oman, short selling, margin financing, and securities lending and borrowing, he said.
Further, with the goal of supporting dual and cross listings across bourses within the Gulf and wider Middle East, MSX has begun establishing connections and partnerships with its peers. To this end, agreements have been signed with Saudi Tadawul, Abu Dhabi Securities Exchange, Bahrain Bourse, and Iraq Stock Exchange.
These linkages, Al Salmi noted, will help publicly traded companies in the Sultanate of Oman gain visibility in the wider region, as well as benefit from higher trading activity and market coverage.
Also notable is the recent agreement signed by MSX with Abu Dhabi Securities Exchange and Bahrain Bourse, which enables access to the Tabadul Hub, an integrated platform that allows GCC investors to trade in different regional markets.
“These are all the steps taken towards promoting the local capital markets and making the market more liquid more attractive to the institutional investors from around the globe, while strengthening our retail investors’ confidence and maintaining the market integrity by creating a sustainable ecosystem for market forces to take their course and provide a conducive investment environment,” Al Salmi stated.
In addition to boosting investor confidence and enabling the rollout of new investment products, the 5-year strategic plan also aims to introduce new trading technologies, help improve the financial performance of listed companies and enhance the capabilities of the capital market’s human capital, he added.
Oman Observer is now on the WhatsApp channel. Click here
