CMA Marks its Anniversary
Al Salmi
IPOs in 2017 more than RO 600 million
Privatization of six government companies expected this year
Gradual implementation of health insurance
HE Sheikh Abdullah Salim Al Salmi, Executive President of the Capital Market Authority said the capital market witnessed huge turnout in 2017 by companies and banking institutions looking for financing in the initial public offerings market.
He added CMA has approved 13 issues in 2017 at RO 603 million of which RO 370.5 million were actually offered so far pointing out such activity in the IPOs has contributed to increasing the market value of MSM to about RO 18 billion from RO 17.3 at the end of 2016. Al Salmi expects the IPOs market to continue at this level in 2018 pointing out that 6 Government companies are expected to be privatized in 2018 quoting the Minister Responsible for Financial Affairs.
The Executive President of CMA said in speech in an event marking the 19th anniversary of CMA that celebrating this day highlights the role of CMA in supervising and regulating the capital and insurance markets for the benefit of the national economy and sustainable development.
Al Salmi reviewed the achievements of CMA in 2017 in the capital market and insurance sectors as well as the plans for 2018 adding that CMA is preparing the legislative infrastructure for health insurance for gradual implementation, continuing the “Tamkeen” scheme for empowering the Omani youth working in the insurance sector and the issuance of acquisition and take over regulation in addition to the new securities law.
CMA has completed a number of initiatives and schemes in 2017 the key was the approval of the Board of Directors of CMA to convert MSM into Government owned company in order to covert it later to public joint stock company, beside the issuance of the regulation for real estate investment funds (REITs) and the rules for converting public joint stock companies into closed companies.
The insurance sector witnessed great leaps in that four national insurance companies were transformed into public joint stock companies and increase of the capital of national and foreign insurance companies to RO 10 million pursuant to the amendments made to the insurance companies law vide Royal Decree No. 39/2014 after the end of the grace period for adjustment of the situation in accordance with the new requirements.
A number of regulations were issued including amendments to the insurance brokers’ regulation, the rules for marketing insurance products, the rules for valuation of the cancelled vehicles due to road traffic accidents, agricultural insurance products beside continuation of training programmes for the employees of the insurance sector.
The number of licensed insurance companies after mergers in 2017 was 21 including a Takaful company and reinsurance company. The number of insurance brokers was 38 and 112 insurance agents offering insurance services all over the Sultanate.