New Rules for Promising Companies Market: How They Can Boost Investment Opportunities in Oman
Promising Companies Market Regulations Introduced by FSA
MUSCAT, AUGUST 10 — The Financial Services Authority (FSA) has unveiled regulations for the Promising Companies Market, a specialized sub-market within the Muscat Stock Exchange (MSX), established under Royal Decree No. 18/2025. This initiative is part of a broader strategy aimed at reinforcing Oman’s capital market framework, enhancing financing options for national enterprises, and facilitating a seamless transition for these businesses into the main market.
The newly implemented regulations focus on developing a comprehensive legal and operational framework for the listing of promising companies, notably startups, small and medium-sized enterprises (SMEs), as well as private and family-owned businesses. The goal is to create a regulatory environment that caters specifically to their unique requirements, providing both financial and operational incentives to foster growth, enhance governance, and ensure long-term sustainability.
Companies can enter the Promising Companies Market through two routes: direct listing or indirect listing.
In a direct listing, a company can join the market without raising capital or offering any of its shares for private subscription. To qualify, a firm must demonstrate net profits over the last three years, achieve an average annual revenue growth of at least 14.4% during that period, and maintain a minimum shareholder base of 20.
Indirect listing, on the other hand, involves raising capital or offering at least 20% of the company’s shares via private subscription. This method requires a minimum of two years of operational and financial performance. However, companies in the establishment phase may pursue indirect listing without meeting the two-year requirement or submitting audited financial statements, provided they comply with other specified conditions.
The FSA has streamlined the listing process for efficiency. Once a company meets all requirements, the FSA will respond to applications within three business days. If no response is provided within this timeframe, the application is automatically approved. It is essential to note that the MSX retains the authority to delist firms that violate regulations, according to established procedures.
Participation in the Promising Companies Market is restricted to specific types of qualified investors, including securities firms, insurance companies, the Social Security Fund, investment funds, and high-net-worth individuals possessing significant financial or market experience.
Listed companies must adhere to the International Financial Reporting Standards for Small and Medium-sized Enterprises (IFRS-SME), which entails submitting unaudited semi-annual financial statements within 30 days after the half-year and audited annual statements within 90 days following the end of the fiscal year. Companies are also required to comply with rules regarding the disclosure of material information.
To promote market stability, there are restrictions on founders’ shares. Established companies cannot sell shares for one year post-listing, although up to 10% may be withdrawn following MSX guidelines. For companies still in formation, shares cannot be sold until one fiscal year after registration, with the possibility of extensions at the discretion of the FSA.
The regulations also specify service fees for listing and issuance, aimed at minimizing the financial burden on eligible firms. According to the FSA, this regulatory framework marks a significant step in implementing the Royal Decree and aligns with national objectives to empower the private sector, support value-added enterprises, and create a favorable investment environment that broadens Oman’s economic base. — ONA
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The introduction of the Promising Companies Market within the Muscat Stock Exchange marks a significant opportunity for SMEs and startups in Oman, enabling them to access capital and enhance governance in a tailored regulatory environment. As these companies gain traction, smart investors and entrepreneurs should consider identifying promising businesses that align with this new framework, while remaining vigilant about the risks of compliance and market volatility. This initiative could herald a new era for Oman’s economy, but careful navigation of the evolving landscape is crucial.
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