MSX
Launches Alternative Investment Market

Muscat,
3 Nov (ONA) — HH Sayyid Bilarab bin Haitham Al Said today presided over the
launch of the Alternative Investment Market (AIM) at the Muscat Stock Exchange
(MSX).

This
initiative is part of an integrated partnership with the National Programme for
Financial Sustainability and Financial Sector Development ‘Estidamah’, along
with several government entities including the Ministry of Commerce, Industry
and Investment Promotion, the Financial Services Authority, the Small and
Medium Enterprises Development Authority, and Muscat Clearing and Depository.

The
market aims to open new financing and investment opportunities to support
private sector companies, including family-owned small, and medium enterprises
with growth and expansion plans.

The
launch of the Alternative Investment Market comes in line with the Royal
directives of His Majesty Sultan Haitham bin Tarik in May 2024 regarding the
implementation of the Capital Market Incentive Programme. This programme aims
to empower the private sector and enhance its competitiveness by providing a
package of incentives to encourage companies to list in the capital market,
aligning with the approaches of Oman Vision 2040 towards building a productive,
diversified and sustainable economy. The Capital Market Incentive Programme
includes three main tracks. The first focuses on incentivising large companies
to transform into public joint-stock companies and list on the main market.

The
AIM represents the second track of the programme, serving as an innovative
financing and investment platform targeting small and medium enterprises
(SMEs). It simplifies listing requirements and offers tax, marketing, and
operational incentives, contributing to the growth and sustainability of these
companies, enhancing their transparency and governance, and building confidence
with investors.

During
the current phase, Bawareq Nizwa International Investment Company will be
listed on the AIM through direct listing. Three other companies are working
towards indirect listing by offering their shares to qualified investors,
namely Nafath for Renewable Energy, Mays for Cars, and the Omani Company for
Insecticides and Air Fresheners. The third track involves encouraging companies
to convert into closed joint-stock companies as a preliminary step towards
potential future public listing on the capital markets.

In
this context, several limited liability companies have transitioned to closed
joint-stock companies, including two family-owned businesses, Saud Bahwan
Holding and Al Rawas Holding, alongside startups in technology and industry
such as Ibn Firnas Drone Centre and Computer Stationery Industry Company. This
step reflects the expansion of involving various sectors within the economic
development and stimulation framework.

The
Capital Market Incentive Programme spans five years, starting from the
effective implementation date of each of the three tracks, allowing for gradual
and balanced execution of initiatives and ensuring the achievement of the set
goals in market development and enhancing its investment attractiveness.

Mahmood
bin Abdullah Al Aweini, Secretary-General of the Ministry of Finance and
Supervisor of Estidamah, noted that Estidamah oversees supporting government
efforts in several strategic pillars for financial sector development,
including activating the role of the capital market and enhancing the MSX’s
attractiveness to local and foreign investments.

The
AIM is expected to contribute to achieving its outlined goals with the
participation of relevant government entities by providing an innovative
financing platform for SMEs and enhancing corporate governance and
transparency.

Commenting
on the launch, Abdullah bin Salim Al Salmi, Executive President of the
Financial Services Authority, affirmed that the launch of the AIM builds upon
the Royal directive for the Capital Market Incentive Programme, embodying the
government’s commitment under the leadership of His Majesty Sultan Haitham bin
Tarik to developing the business environment and preparing an investment
climate capable of supporting the growth and sustainability of private sector
institutions.

He
stated that the inauguration of the AIM represents a qualitative leap in the
journey of the capital market in the Sultanate of Oman, preparing national
companies for a gradual transformation into public joint-stock companies listed
on the main market after meeting the necessary requirements. The new market, he
said, will contribute to diversifying funding sources, enhancing governance
practices and corporate sustainability, and developing the capital market to be
more attractive to local and foreign investments.

Meanwhile,
Haitham bin Salim Al Salmi, CEO of MSX, emphasised that the launch of the AIM
is within the MSX’s commitment to supporting company growth and enabling them
to enhance their competitiveness. He pointed out that this designation reflects
confidence in the potential of scale-ups and their ability to evolve, grow and
prosper.

He
added that listing companies on this market aims to provide diverse financing
options by increasing capital and attracting investors, contributing to future
business expansion and sustainability, alongside providing liquidity for
investors and facilitating divestment processes through offering, listing and
trading.

In
turn, Mohammed bin Said Al Abri, CEO of Muscat Clearing and Depository,
explained that the launch of the AIM comes to achieve the goals of Oman Vision
2040 and is an important step in the development path of Oman’s capital market,
as it provides new opportunities for entrepreneurs and start-ups to grow and
attract investments.

He
stated that Muscat Clearing and Depository has worked on updating the central
depository system and enhancing the readiness of technical systems to
accommodate the requirements of the new market, ensuring operational
efficiency, service reliability, and smooth processes for company listing,
investor registration, clearing, and settlement.

The
launch of the AIM represents a strategic step towards developing the capital
market ecosystem in the Sultanate of Oman and expanding the financing options
available to the private sector. This enhances its contribution to economic
growth and solidifies Oman’s position as a promising investment destination
based on the foundations of transparency and financial sustainability.

—
Ends/AH