HE Abdullah Salim Al Salmi, Executive President of the Capital Market Authority said the Capital Market Authority is  preparing the legal and technical infrastructures for the creation of an exchange for Small and Medium Establishments  in collaboration with other related parties.

HE told “Oman Al Iqtisadi” that the creation of an exchange for SME’s would  help such enterprises obtain financing for their operations to expand their businesses through the capital market. He pointed out that the exchange will support SMEs  to enable them to get recognition and confidence in dealing with suppliers and clients to obtain services at appropriate prices to enable completion.

According to the statement of the Executive President of CMA no terms and conditions have been set yet, However,  there would be a minimum limit of capital which is RO 200,000 in addition to guarantee by a market intermediary to manage their accounts..

He said CMA will start receiving the application forthwith completion of the procedures and then look into listing SMEs in the main market once they are ready and meet the listing requirements.

He explained that SMEs would allow shareholders to trade in their shares in  a different manner through special auction and negotiations platform.

The licensed companies would support the SMEs through  facilitating investment therein. He added the exchange would be different from the main stock exchange with separate  listing, trading and disclosure requirements.

CMA aims from this initiative is to support SMEs through providing regulatory  cover to enable their growth, sustainability and competition for the benefit of diversification of the economy, creation of jobs, transfer of technology and eventually transferring such establishment to the main stock exchange after becoming large and effective companies with influence on the economy.

CMA has assessed various approaches used by capital markets and exchanges in the area of SMEs to put into place more appropriate standards.