Reflecting the growing role of Oman’s capital market in financing the private sector, more than RO 7 billion in financing was provided through the market during the 2021–2025 period, supporting investment and economic growth through effective financing alternatives.

H.E. Abdullah bin Salim Al Salmi, Executive President of the Financial Services Authority (FSA), said that Oman’s capital market has established itself as one of the key financing pillars supporting the national economy. While bank financing remains the preferred option for many private sector companies due to its long-established financing culture and familiarity among businesses in meeting their funding requirements, H.E. Al Salmi emphasised that the capital market and the banking sector are not substitutes for one another, but rather complementary components of an integrated financing ecosystem.

Speaking to Oman News Agency (ONA), H.E. Al Salmi said that the FSA is working to develop a capital market capable of financing new projects and promising productive sectors, thereby contributing to the expansion of the private sector, diversification of the national economy and enhancement of its regional and global competitiveness. He added that this would also support the production of goods and services while creating sustainable employment opportunities for Omani talent.

H.E. Al Salmi noted that the banking sector primarily focuses on short-term financing, whereas the capital market provides medium- and long-term financing solutions that are better suited to the nature of investment and development projects.

He added that the next phase requires greater awareness of the financing instruments available through the capital market, along with correcting some common misconceptions, particularly the belief that the capital market is limited to trading on the Muscat Stock Exchange. In reality, the primary issuance market serves as the principal engine for financing new projects and investments.

H.E. Al Salmi further explained that companies and new projects, including those in mining, logistics and other promising sectors, can utilise the primary issuance market to secure the financing they require before listing their securities for trading on the Muscat Stock Exchange.

In the same context, H.E. Al Salmi pointed out that the Commercial Companies Regulation issued in 2019 granted the Financial Services Authority central responsibility for regulating public joint stock companies, beginning with their incorporation, through the supervision of their administrative and financial affairs, and extending to the promotion of best corporate governance practices. This contributes to improving market efficiency, strengthening transparency and investor confidence, and creating a more attractive investment environment.

H.E. Al Salmi also affirmed that the FSA is encouraging the development of advanced financial products, including sustainable finance instruments and innovative financing solutions, both conventional and Sharia-compliant. In addition, the FSA is expanding the application of financial technology to enhance financial inclusion and facilitate access to financing for small and medium-sized enterprises (SMEs), in line with the aspirations of future generations and the goal of achieving intergenerational sustainability.