Muscat Stock Exchange MSM transformation completed

Muscat: An Omani private joint stock company was established under the name Muscat Stock Exchange (MSX), effective Saturday April 10, 2021 to take over and undertake all activities and functions of the Muscat Securities Market (MSM).

This was in accordance with Royal Decree No. 5/2021 issued by His Majesty Sultan Haitham bin Tarik, dated January 5, 2021 (Royal Decree). In accordance with the Royal Decree, all assets, liabilities, activities, rights and functions of MSM are transferred and sold to MSX.

The Muscat Stock Exchange will operate under the umbrella of the Oman Investment Authority (OIA), which was established to provide financial solutions to the diverse and growing economic demands of the Sultanate.

The MSX, with the support of the OIA, will work to increase Oman’s foreign direct investment (FDI) and help MSX members participate in the continued Renaissance march to find new avenues and instruments for the growth of the national economy of the Sultanate.

The transformation of the market into an Omani private joint-stock company will improve the investment development process, both by providing an efficient platform full of opportunities for the listing and trading of securities, as well as by supporting the diversity of economic development plans and ensuring the sustainability of financial instruments. .

With this transformation, MSX aspires to play a leading role in the regional and international securities arena through various innovative initiatives aimed at developing the stock market with transparency, governance, improved corporate performance, increased operational efficiency and issuance of securities. new investment opportunities and instruments. , for the benefit of local and international investors.

On this occasion, Sheikh Abdullah bin Salem Al Salmi, Executive Chairman of the Capital Market Authority (CMA), declared that this decision was a momentous declaration and a monumental step in the development of the Omani capital market.

He also said that today’s date will be recorded in history as a milestone in Omans’ journey into the capital market.

The creation of MSX as an independent institution belonging to the OIA, is a step that represents a qualitative leap that will bring us a new era of development followed by developments throughout the economic framework of the Sultanate, he said. .

This step is also in line with global governance best practices, which include the provision of exchanges with an independent legislative structure so that they function better and in a more professional and transparent manner.

Al Salmi said the transformation of the Stock Exchange into an independent company comes at an important milestone the Sultanate is going through in light of the renewed renaissance led by His Majesty Sultan Haitham bin Tarik and the renewed vision of Oman 2040.

We are confident that this step will help further improve the market and provide a platform for market forces to thrive to achieve the desired results necessary for the development of our investment climate and provide us with a more diverse market, a he added.

Al Salmi said this is the first step in moving MSX to a publicly traded company on our securities platform, going forward, in line with global best practices.

We are optimistic that this step will make it possible to achieve the objectives which have been set for it and to leave the exchange sufficient freedom, necessary to manage its affairs with improved and faster decision-making powers. In addition to being able to adapt innovative marketing practices to promote its products and services, he added.

The performance of the stock exchange will be subject to good governance standards, regulations and legislation that guarantee its good performance and strengthen its capacity in the face of regional and global competitiveness, Al Salmi said.

This independence also strengthens the role of the CMA as a regulator and oversight body in a way that leads to protect investors by increasing the efficiency of the stock exchange and trading operations, while achieving more transparency, making the more efficient and responsible market. will in turn lead to strengthening investor confidence in the market. This will create a cycle of trust and attractiveness in the global investment arena for the local capital market, he said.

Al Salmi asserted that the stock market plays a vital role in contemporary economies, as it is the benchmark of the country’s financial and economic systems and an effective engine of economic growth through its ability to utilize domestic savings and other financial surpluses to finance investment projects and initiatives proposed by the private sector or to cover the financing needs of the government to implement comprehensive development projects and programs.

Ideally, it is the country’s exchange that drives economic activity by providing liquidity, an allocation of capital and improved prospects for future economic growth, he added.

Mohammed bin Mahfood Al Ardhi, Chairman of the MSX Board of Directors, said the day is a historic milestone in the march of the securities industry in the Sultanate of Oman, a new start for its financial market and a next step in growth and development.

To achieve a solid and sober ground which allows this renewable institution to move forward towards prosperity, by providing its services in an efficient manner and by following best practices and international standards, he said.

The Chairman of the Board affirmed that the MSX has sufficient resources on which it will work to develop the stock market by offering and showcasing new investment products and services that meet the aspirations of investors, and by working with all relevant parties to overcome obstacles. and turn challenges into opportunities that improve the position of stocks on the investment map.

Al Ardhi said: Stock exchanges are one of the basic infrastructure institutions for economies and their presence as businesses gives them the independence and flexibility they need to organize their activities and follow the approach. profit-based business without prejudice to main principles and provision. of all services with high efficiency and effectiveness.

He also added that in light of the changes taking place in the economy of Oman and the leadership of the government of His Majesty Sultan Haitham bin Tarik, through Oman 2040 Vision, to empower the private sector to that it assumes its real role in the direction of the and the existence of a full-fledged stock exchange will contribute in one way or another to reinforce the hoped-for role of the private sector.