The Financial Services Authority (FSA) held a specialized, hands-on workshop titled “From Theory to Live Simulation: Build and Test Your First Investment Portfolio” for students of Sultan Qaboos University (SQU). This initiative forms part of the FSA’s ongoing efforts to enhance financial and investment literacy among members of society and to empower them to connect theoretical concepts with practical application in a real market environment.

The workshop aimed to build students’ capabilities in investment portfolio management by providing a deeper understanding of investment fundamentals, asset allocation principles, risk management, and the concept of risk-return balance. It also focused on applying diversification as a key tool to reduce unsystematic risk and enhance the long-term stability of investment portfolios.

During the practical session, participants moved from theory to direct application by selecting between 8 and 12 listed stocks on the Muscat Stock Exchange (MSX) and determining appropriate investment allocations for each asset based on portfolio goals and risk tolerance. Using simple tools such as pen and paper or Microsoft Excel, students constructed their first investment portfolios within a timeframe ranging from 60 to 90 minutes.

In the live simulation phase, the portfolios were tested under realistic market scenarios, including a general market decline of 15%, notable growth in certain economic sectors, and various economic crisis scenarios. The performance of each portfolio was measured, the extent of its exposure to these variables was analysed, and the strengths and weaknesses of different investment decisions were discussed.

The workshop concluded with an interactive open discussion session, during which students reviewed their portfolio outcomes, compared selected strategies, and exchanged insights and lessons learned. The discussions reflected a high level of awareness and engagement, reinforcing students’ ability to make well-informed investment decisions in the future.

The FSA affirmed that such practical workshops are part of its strategy to build a financially capable generation of Omani youth, able to contribute effectively to strengthening domestic investment and achieving sustainable development.