Muscat – Oman’s capital market facilitated more than RO7bn in fundraising between 2021 and 2025, underscoring its growing role in channelling investment to the private sector and providing alternative financing avenues for economic growth.

In a statement to Oman News Agency, H E Abdullah bin Salim Al Salmi, Executive President of the Financial Services Authority (FSA), said the Omani capital market has firmly established itself as an important source of financing for the national economy.

He noted that although bank lending remains the preferred financing option for many private sector companies, largely due to established business practices and financial culture, the banking sector and capital market should be viewed as complementary rather than competing sources of finance.

H E Salmi said the FSA is working to develop a capital market capable of financing new projects and high-potential productive sectors. This, he said, will help expand the private sector, diversify the national economy, enhance its regional and global competitiveness, boost the production of goods and services, and create sustainable employment opportunities for Omani nationals.

He explained that while banks primarily provide short-term financing, the capital market offers medium- and long-term funding solutions better suited to investment and development projects.

According to H E Salmi, the next phase requires greater awareness of the financing instruments available through the capital market, as well as correcting common misconceptions, particularly the perception that the capital market is limited to trading on the Muscat Stock Exchange. He stressed that the primary market, through initial public offerings (IPOs), plays a vital role in financing new projects and investments.

He added that emerging companies and projects in sectors such as mining, logistics and other high-growth industries can raise the capital they need through IPOs before listing their securities on the Muscat Stock Exchange.

H E Salmi also highlighted that the Commercial Companies Law, introduced in 2019, granted the Financial Services Authority overarching regulatory responsibility for public joint-stock companies, covering their establishment, administrative and financial oversight, and the implementation of best corporate governance practices. He said this framework enhances market efficiency, strengthens transparency and investor confidence, and creates a more attractive investment environment.

He further noted that the FSA is encouraging the development of advanced financial products, including sustainable and innovative financing instruments, both conventional and Sharia-compliant. The authority is also promoting wider adoption of financial technology to improve financial inclusion and facilitate access to finance for small and medium-sized enterprises (SMEs), supporting the aspirations of future generations and advancing long-term sustainable development.