Muscat, Oman – With the launch of the Alternative Investment Market (AIM) regulation, small and medium enterprises (SMEs) in the Sultanate of Oman can now access green financing more easily via lower entry barriers and tailored listing conditions designed to support their growth, innovation and sustainability.

The regulation, issued by the Financial Services Authority (FSA), creates a secondary market within the Muscat Stock Exchange that enables SMEs, start-ups and family-owned businesses to raise capital in a simplified regulatory environment. It promotes transparency and competitiveness, strengthens investor confidence and supports Oman Vision 2040 diversification goals.

The issuance of this regulation comes hand in hand with the FSA’s national roadmap for harmonising the non-banking financial sector with the principles of green and sustainable finance, a 36-month plan that aligns global best practices with Omani frameworks to ensure a systematic and credible transition to green finance.

In line with this roadmap, and in direct support of Oman’s commitment to achieving net-zero emissions by 2050, the FSA has also defined the scope of green and sustainable finance through the Bonds and Sukuk Regulation.

In reference to Article 98 in the regulation, it obliges any issuer or beneficiary seeking to issue green or sustainable bonds or sukuk to outline in the prospectus the objectives pursued, which may include preserving the environment and natural resources, rationalising energy consumption, encouraging renewable energy, reducing greenhouse gas emissions, and other measures consistent with sustainability targets. In doing so, it links the disclosure requirements for capital-raising instruments with the wider net-zero framework, ensuring coherence, transparency and credibility.

To ensure credibility and investor trust, the regulation requires companies to adopt the International Financial Reporting Standards for SMEs (IFRS for SMEs), providing simplified reporting requirements while upholding global benchmarks of transparency and accountability.

By applying this standard, SMEs in Oman can attract investors, lenders and business partners with confidence, as their financial reports are prepared under a globally recognised framework that balances simplicity with credibility.

At its core, the market aims to unlock financing opportunities for SMEs that may otherwise struggle to raise funds through traditional banking channels. By lowering entry barriers and tailoring listing requirements, the regulation enables start-ups, technology ventures and even companies under establishment to secure investment and expand their operations.

This flexibility is particularly important for entrepreneurs in digital services, clean energy, logistics, and advanced manufacturing, sectors central to Oman’s green and digital transition, where the need for growth capital is urgent.

The regulation also complements Oman’s wider push into sustainable and green finance. By embedding transparency, governance and disclosure requirements, it encourages businesses in renewables, circular economy projects, and eco-friendly technologies to benefit from market funding. With the Sultanate of Oman committed to achieving the net-zero emissions goal by 2050, the AIM Market is set to become a hub for enterprises developing energy-efficient building materials, low-carbon transport solutions and waste-to-energy technologies.

The market is not only about finance, but also about innovation. Its design lays the groundwork for deeper integration with fintech platforms, crowdfunding solutions and digital investment tools, making it easier for investors and entrepreneurs to connect. This opens the way for more dynamic participation by venture capital funds, angel investors, and high-net-worth individuals seeking opportunities in emerging industries. It also gives SMEs exposure to smart financing methods that are reshaping global markets, from tokenised assets to digital trading systems.

To balance accessibility with investor confidence, the regulation adopts a phased approach. Companies benefit from simplified reporting standards, reduced compliance costs, and clear listing options, either direct or indirect. These choices allow businesses to enter the market according to their maturity and strategic needs, while gradually preparing them for graduation to the main market with stronger governance and financial discipline.