MUSCAT: The 22nd Economic Council session of the Omani Economic Association (OEA) was held at the Cultural Club on Monday, October 21, 2024. Chaired by Dr Khalid bin Said al Amri, Chairman of the Board of Directors of OEA, it was also attended by Shaikh Nasser bin Suleiman al Harthy, Vice President - Operations at Oman Investment Authority (OIA).

A panel discussion held on the occasion featured two CEOs: Haitham bin Salem al Salmi, CEO of Muscat Stock Exchange (MSX), and Mustafa Salman, CEO of United Securities, along with Ahmed bin Ali al Maamari, Vice President of the Financial Services Authority (FSA).

The session discussed the capital market’s role in supporting financial sustainability, the FSA’s efforts to drive financial innovation, and MSX’s objectives. It also explored the stock exchange’s role in expanding family businesses and SMEs, and its strategic plan to achieve emerging market status.

Dr Khalid bin Said al Amri emphasized the capital market’s importance as a key financial tool and a vital part of the production process alongside human capital and technology. He noted that it helps ensure company sustainability, unlike family businesses, 98 per cent of which vanish by the third generation.

Ahmed bin Ali al Maamari, Vice President of FSA, stressed the need for cooperation to achieve financial sustainability and support the economy by offering alternatives to bank financing. He noted efforts to integrate the oil and gas sector into the Muscat Stock Exchange to boost its appeal. He highlighted the OQ IPO, which injected RO 600 million, and the role of the capital market in long-term financing. He also mentioned the licensing of crowdfunding and collaboration with the Oman Investment Authority to list more companies.

Haitham bin Salem al Salmi, CEO of MSX, noted that the investment environment has been completed over the past few years. While the stock exchange was previously open to all, clear goals have been set for the upcoming phase over the past three years. He explained that the FSA role is supervisory, and efforts have been made to meet the requirements of becoming an emerging market. Most of these requirements are now in place, with a focus on market capitalization in the near future.

This year, the “Promising Companies Market” will be launched, with priority given to usufruct rights and tax reductions to enable companies to meet lighter disclosure requirements. Family businesses are invited to enter this market.

Mustafa Salman, CEO of United Securities, stressed the need to enable brokerage firms to grow in order to support the MSX. He pointed out that the limited number of these firms does not help expand their role or enhance their ability to provide better services to investors in line with the current phase of the Sultanate of Oman’s renewed renaissance. He added that financing in the stock sector is very weak and does not serve the goals and ambitions of the capital market.

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