MSX Upgrade Accelerates: What Increased Market Liquidity Means for Investors and Entrepreneurs in Oman
MUSCAT, NOV 2 — The Sultanate of Oman is advancing capital market reforms to enhance liquidity, expand sector representation, and achieve an upgrade of the Muscat Stock Exchange (MSX) from frontier to emerging market status. These strategic initiatives aim to attract foreign investment and better align the exchange with the real economy, according to Abdullah bin Salim al Salmi, Executive President of the Financial Services Authority (FSA).
In an exclusive interview with the Observer, Al Salmi highlighted the MSX’s strong performance, driven by robust primary issuances exceeding RO 4 billion in 2024, with an annual average of RO 2.1 billion since 2022. This surge in new listings and offerings has nearly doubled the retail investor base—up by approximately 97% from 2022—and enhanced MSX’s representation in key sectors such as energy, logistics, and financials. However, gaps remain in sectors including mining, agriculture and fisheries, tourism, healthcare, and education.
To ensure fair pricing and continuous trading, the FSA has introduced market makers and liquidity providers, while promoting active participation by both retail investors and long-term institutional players. Al Salmi stressed that liquidity depends fundamentally on strong disclosure standards and timely information flow.
Product diversification is also progressing. The regulatory framework now supports green and sustainable bonds, sukuk, and ESG-linked bonds. The introduction of derivatives and futures is under consideration as the market ecosystem matures. The FSA aims to facilitate product issuance with rules designed to be “open and responsive” to market demand.
The MSX is recognized as one of the region’s most accessible markets and is actively seeking to attract foreign investors. Efforts to secure emerging market classification are coordinated among the FSA, MSX, Ministry of Finance, and the Oman Investment Authority to boost liquidity, diversify products, and increase international visibility.
At the policy level, Al Salmi emphasized that diversified, deep, and liquid markets are essential for efficiency, reflected in their capacity to represent true economic value. Consequently, disclosure, information quality, and active market participation remain indispensable pillars for the capital market’s continued development.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s accelerated capital-market reforms and push for an emerging market upgrade position the Muscat Stock Exchange (MSX) as a growing hub for foreign inflows and sector diversification, particularly in energy, logistics, and finance. Smart investors and entrepreneurs should seize opportunities in the expanding primary market and ESG-linked instruments while preparing for increased market transparency and liquidity supported by new regulatory frameworks. The ongoing reforms also signal potential in underrepresented sectors like mining, agriculture, and healthcare, inviting forward-looking investments aligned with Oman’s real economy shift.
