Fiscal Sustainability and Diversification Initiatives: Key Drivers for Strengthening Investor Confidence in Oman
MUSCAT, Aug 30 — The Ministry of Economy (MoE) has highlighted the positive impact of Oman’s economic diversification strategy and financial sustainability initiatives, noting their role in strengthening investment confidence and positioning the Sultanate as a competitive investment destination aligned with international standards.
The Ministry reported significant strides in the implementation of Oman Vision 2040, including improvements in financial stability, reduction of public debt, and the upgrade of Oman’s sovereign credit rating to investment-grade. These achievements have supported steady national economic growth and enhanced the performance of non-oil sectors.
Emphasizing Oman’s strong commitment to investment-friendly policies and regulatory reforms, the Ministry stated that these efforts continue to boost the economy’s competitiveness and attract high-quality investments aligned with diversification goals.
A vital component of this progress is the enhanced efficiency and performance of the financial sector and capital markets, which underpin the country’s financial and economic sustainability. Key objectives include increasing the private sector’s role, supporting small, medium, and emerging enterprises, and broadening the range of financing options. These goals are integral to accelerating economic diversification under the Tenth Five-Year Development Plan (2021-2025).
The National Programme for Fiscal Sustainability and Financial Sector Development (Estidamah) has been pivotal in advancing the Muscat Stock Exchange (MSX), aligning its growth with that of the national economy. Estidamah supports the MSX’s evolution towards emerging market status and expands its role in financing private enterprises and entrepreneurs.
Initiatives under Estidamah have facilitated the diversification of financial instruments, improved market liquidity, and increased trading volumes through mechanisms such as market makers and liquidity providers.
Initial public offerings (IPOs) under the Oman Investment Authority’s share allocation programme have reinforced private sector empowerment, opening investment opportunities in promising industries like oil and logistics. These IPOs have raised the total market value on the MSX and attracted new investors, reflecting strong confidence in Oman’s capital market prospects.
The MSX’s Main Index recently surpassed the 5,000-point mark, marking a significant milestone that underscores improved market depth, liquidity, and investor trust. This progress results from ongoing initiatives to enhance financial stability and expand the financial sector’s contribution to Oman Vision 2040’s sustainability objectives.
Furthermore, the Ministry reaffirmed the government’s commitment to improving the investment environment through the capital market incentive programme under the “Sustainability” framework. This programme encourages private sector participation and growth by offering benefits to companies listing on the MSX.
A notable advancement is the launch of the ‘Promising Companies Market’ (also called the ‘Alternative Investment Market’), designed to facilitate the listing of small and medium-sized enterprises as well as private and family businesses. This initiative complements other strategic efforts under the tenth five-year plan, including enhanced financing systems, support for artificial intelligence and advanced technology sectors, industrial modernization, expanded incubator programs, the establishment of an entrepreneurship academy, and a dedicated SME economic zone.
Collectively, these programmes aim to empower the private sector, promote entrepreneurship, achieve economic diversification, and meet national sustainability and employment goals. — (ONA)
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Oman’s strategic focus on economic diversification and financial sustainability, underscored by initiatives like Estidamah and the promotion of IPOs, creates significant growth opportunities for private sector businesses and investors in emerging sectors such as oil, logistics, and technology. The development of the Promising Companies Market and enhanced capital market incentives position Oman as a more attractive and competitive investment destination, urging smart investors and entrepreneurs to leverage these platforms to tap into expanding market depth, liquidity, and innovation-driven enterprises. Businesses should align with Oman Vision 2040 priorities, focusing on sustainability, private sector empowerment, and technological advancement to thrive in this evolving landscape.
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