As part on the preparations of the Sultanate of Oman represented by the Capital Market Authority to ready  the legislative infrastructure for green and sustainable financing based on enhancing green economy as one of the pillars of Oman Vision 2040, the Capital Market Authority organized on Monday a seminar on green and sustainable financing at the Oman Chamber of Commerce and Industry to highlight the Moroccan experience in this type of financing and the  regulatory frameworks needed for green and sustainable financing.

 The seminar was attended by representatives of different government and private sector economic entities and comes after the signing of a memorandum of understanding between the Capital Market Authority of the Sultanate of Oman and the Capital Market Authority of the Kingdom of Morocco for mutual cooperation and exchange of information.

The seminar included a working paper presented by the Moroccan Capital Market Authority on the regulatory frameworks of green financing, the realities of the market, its contribution in directing investments toward economic activities that strike balance between economic, environmental and social objects to improve the welfare of human being and to limit the impact of global challenges such as climate change.

Yaser Al Monsif, Operations and Information Director at the Moroccan CMA said the Moroccan experience is 6 years old with green financing volume at $450 million in the Moroccan market. He said six issuances have been issued since 2016 pointing out to the ideal standards for specifying the returns and whether or not the instrument is green, the nature of the issuers with regard to volumes of the issuances and the types of funded activities which represented an addition to the Moroccan capital market. He also  pointed out to the nature of targeted investors emphasizing that  it opens the way for  individuals and institutions, the attractiveness of the financing instruments compared to the conventional instruments, the methods of regulation of the issuers, violations and penalties.

Abdullah Hilal Al Siyabi, Director of Companies Affairs talked about CMA’s preparations for green financing and the alignment of the regulatory framework emphasizing that the motivation for such move is to achieve the objects of sustainable development, Oman Vision 2040 and balancing between economic objectives, natural resources and environmental requirements to preserve the sustainability of such vital resources and enhancing the financial returns for the longest possible term.

Al Siyabi pointed out in his presentation to the green bonds and sukuk targeting socially responsible investors, which is one of the objects of the strategic plan of the CMA 2021-2025 as well as other initiatives.

It is worth to note that global green financing witnessed rapid growth in the past decade including green bonds and sukuk, green loans, green funds and green insurance.