MUSCAT: Statistics from the Muscat Stock Exchange (MSX) reveal that investors from 135 nationalities are involved in the market, with foreign investment accounting for 19 per cent.
The MSX is actively working to attract more investors by offering a comprehensive database on listed companies, raising awareness about investment opportunities, diversifying investment tools, and promoting transparency and disclosure among public joint stock companies. The exchange also encourages government and family businesses to transition to private joint stock companies.
Oman's capital market offers several advantages for foreign investors, such as low tax rates, unrestricted capital and profit transfers, and a stable exchange rate of the Omani rial (RO) against the US dollar. Foreign investors can invest in MSX-listed shares or investment funds without prior permission. Additionally, an independent supervisory body ensures a fair and stable market, protecting investors' rights and maintaining high levels of transparency and integrity.
Most public joint stock companies on the MSX allow up to 100 per cent foreign investment. Statistics show that foreign investments are mainly in the industrial and services sectors at 15.8 per cent and 15.7 per cent, respectively. Gulf investors prefer the services and financial sectors at 15.4 per cent and 8.5 per cent, respectively. Arab (non-Gulf) investments are focused on the financial sector at 3 per cent, while local investments dominate the financial sector at 87.6 per cent, the industrial sector at 75.6 per cent, and the services sector at 67.7 per cent.
The first half of this year saw an increase in trading volume and value. By May, trading value reached RO 517 million, a 38.4 per cent increase from RO 373.5 million in the same period last year. The number of traded securities rose to over 3.1 billion, compared to about 1.4 billion last year. Executed transactions increased from 96,000 to over 106,000.
This growth aligns with the improved national economy and increased confidence in government measures to reduce public debt, boost spending on essential services, and launch infrastructure projects that support local and foreign private sector investments.
The market value of public joint-stock companies listed on the MSX grew by RO 448.5 million this year, reaching RO 9.416 billion by the end of May, compared to RO 8.967 billion at the end of last year. This represents 38.5 per cent of the total market value of securities listed on the exchange, which rose to RO 24.478 billion by the end of May, gaining over RO 676 million from last year. The market value is spread across closed companies at RO 10.7 billion, the bond and sukuk market at RO 4.362 billion, and public joint-stock companies at RO 9.4 billion.
The main index of the MSX rose to 4,845 points by the end of May, increasing by 331 points. This rise supports investor optimism in the MSX's growth potential, especially with the Oman Investment Authority planning to offer several companies for public subscription in the current and coming years. Successes in IPOs like Abraaj Energy Services and OQ Gas Networks last year have attracted more investors to the exchange and enhanced liquidity.
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