Three companies have been issued in-principle licences for takaful operations in the sultanate, executive vice president of the Capital Market Authority (CMA) said. Speaking to reporters on the sidelines of a CMA seminar at the Oman Chamber of Commerce and Industry (OCCI) on Tuesday, H E Abdullah al Salmi said that takaful operations will begin soon in Oman since the CMA is in the process of issuing licences.
“We have issued in-principle licences to three companies to begin takaful operations. We are waiting for them to complete the requirements. And once they are done we will see them operating in Oman,” he said. When asked about the companies interested in floating initial public offerings (IPOs) in 2013, H E Salmi said, “We have already given approval to Oman Arab Bank to float its IPO of 25 per cent of its share capital. However the timing is yet to be announced.
Currently, we do not have information about the number of companies but we expect many.” According to Oman's commercial law, currently a company needs to dilute a minimum of 40 per cent of its capital for listing on the Muscat Securities Market (MSM). However, CMA is expected to approve changes to the commercial law which would allow firms to offer a 25 per cent stake for listing.
“We are in the process of amending the commercial law and we expect to complete it very soon,” said H E Salmi. Regarding the issuance of sukuk by companies in the sultanate, he added, “Only SAOC and SAOG companies will be allowed to issue sukuk, LLC companies are still not eligible.”
The CMA seminar, presided over by H E Yahya al Jabri, chairman of CMA and chairman of Special Economic Zone at Duqm, aimed at maintaining lines of communication with capital market stakeholders, exchange of ideas on how to activate the role of the capital market and help it achieve its aims with regard to the sustainable development plans of the economy