CMA Reviews Investment Options for Sohar Free Zone companies

Al Abri: the capital market contributes to Achieving partnership between public and private sectors to finance huge development projects

Al Salmi: The Stock Exchange Aims to Increase the liquidity of listed shares, increase market value and focus on easing foreign investments

Mohammed Said Al Abri, Vice President for Capital Market  at the Capital Market Authority said the capital markets are the main pillar in supporting the economic development worldwide further to being the underpinning in creating true partnership between the public and private sectors  through furnishing financing for huge development and investment projects supporting the economy. Al Abri added the Omani capital market is ready legislative, and technology wise to finance huge productive projects to ensure the expansion of investment and lucrative investment opportunities for individuals and institutions.

Al Abri gave an opening speech in the seminar organized by the CMA in collaboration with the Public Authority for Special Economic Zones and Free Zones at the Sohar Free Zone under the these “The Capital Market and its Financial Options to Enhance Investment Activity” for the directors and managements of the companies operating at the Sohar Free zone as part of series of awareness seminar to be organized this year in the various Governorates.

Al Abri added that the laws and regulations governing he capital market have recently witnessed updates as well as expansion in licensing new products in line with the new fintech  to meet the financing needs of the  market, and that the CMA is dealing with adequate level of resilience  to ensure protection of the rights of all stakeholders as well providing enhanced  public confidence.

Al Abri emphasized that the seminar aims to extend communication bridges for exchange and sharing of views between the capital market institutions and the enterprises at the economic and free zones in the Sultanate through emphasizing the role of the sector in ensuring the sustainability of the performance of the companies and providing long term financing  further to creating true partnership  with the private sector through  unified policy and methodology in executing huge development project based mainly  on  financing from  capital market.

Haitham Salim Al Salmi, Chief Executive Officer of Muscat Stock Exchange (MSX) pointed out to the gradual development of MSX and the roles it plays in financing economic development projects whether for the government sector or the private sector. He talked about MSX’s strategy that is derived from the main pillars namely the growth of the national economy, attractiveness of the stock exchange, the fintech,  the commercial performance of the stock exchange  and the development of the internal infrastructure of the stock exchange. He added such pillars are the foundation for a set of objects and initiatives to go ahead in the next five years in accordance with a work plan and timeline with the clear indices to assess the extent of success.

He added the key object we hope to achieve soon is to upgrade the MSX to an emerging stock exchange as per the ratings of the global rating agencies. To this end we will work to increase shares liquidity and the market value focusing on easing entry of foreign investments and adding trading features such as short selling and securities borrowing etc. to enable the MSX to upgrade to global indices. He emphasized the importance of listing the companies in the stock exchange and disclosures as well as environmental, social governance and  corporate governance.

Mohammed  Hamad Al Rahbi, Assets Management Manager at Ubhar Capital  talked about the financing instruments available in the capital market and the role of the capital market in the economy adding that the national economies rely of them in stimulating the wheel of economy. He talked about  financing through loans or through shareholding.

Ahmed Al Kindy, a Director at Muscat Clearing and Depository Company (MCD) talked about the role of MCD in safeguarding the records of shareholders and providing appropriate services to protect the rights of investors in the stock exchange such as providing statements of holdings, transactions, share and cash dividends, corporate actions such as mergers, liquidations etc. He elaborated on the services the MCD renders to the regulators, the stock exchange and listed companies. Al Kindy added the MCD employs state of the art technology in the business  such as providing virtual platform for general meeting, remote subscription in the offerings further to electronic services to the public.

The seminar concluded with a discussion session in which views were shared with the representatives of the companies at the economic and free zone.

It is worth to note the capital market  is able to meet huge financing needs for economic sectors to expand their investments through long term financing instruments through shareholding or borrowing . The total value of Government and corporate bonds and Sukuk was about RO 6.024 billion at the end of 2020. The sector  contributes annually to  RO 2 to 3 billion financing.