MSX in talks with FTSE, MSCI to join global, emerging market indices: CEO

Muscat Stock Exchange (MSX) is working closely with FTSE and MSCI to upgrade the market for inclusion in global and emerging markets indices, CEO Haitham Al Salmi told Argaam.

In an interview on the sidelines of the HSBC GCC Exchanges Conference 2025 in London, Al Salmi noted that the merger of Sohar International Bank and Ahli Bank will create a third large-cap company that meets index inclusion criteria, boosting the market's chances of being added to the watchlist.

He emphasized that the focus remains on enhancing free float and liquidity, pointing out that the market already meets the technical requirements for an upgrade. MSX is also strengthening its fundamentals to attract more investment, including the planned launch of ETFs in collaboration with brokers, with a particular focus on the top five listed companies.

Al Salmi highlighted the launch of the "Promising Companies Market" as an alternative investment platform, similar to growth markets in the region. The new market aims to list small, medium-sized, and family-owned businesses and is distinguished by the absence of market capitalization limits. It also offers various incentives, such as tax exemptions, priority in government tenders and privileges, and expedited access to government services and facilities.

He added that the introduction of liquidity provision services and the activation of market makers have helped double trading volumes and significantly enhance liquidity. A third fund is currently being prepared for launch, and companies are increasingly acknowledging the importance of liquidity by appointing providers and expanding their mandates.

The CEO also noted that integration with the Abu Dhabi and Bahrain markets has attracted additional brokers, with four firms now licensed as cross-border market makers and liquidity providers.

The conference serves as an important platform to connect with investors, particularly since London is a key center for asset and portfolio managers investing in the Middle East and the Gulf. He stated that the event offers a valuable opportunity to highlight Oman’s investment story, the progress made, and the attractive opportunities available in the market. This year, eight Omani companies participated in the conference, reflecting strong investor interest in the Omani market.

Most of the participating companies are recently listed with strong capital bases and high liquidity, making them attractive to investors. The Omani delegation also included a government official to discuss economic diversification, Oman Vision 2040, and its impact on market development.

Al Salmi added that Oman has opened its market to international investors since the enactment of the Foreign Investment Law in 2019, which removed limits on foreign ownership. The market is now fully open to investors of all nationalities, both individuals and institutions.

He also pointed out that the government abolished withholding tax three years ago, meaning there are no taxes on profits or capital gains, and all returns go directly to investors.

In conclusion, Al Salmi reaffirmed MSX's commitment to securing an index upgrade by further improving market liquidity. This is evidenced by the recent launch of international market-making services, with the first global market maker beginning operations in Oman last week through an exchange hub—highlighting growing international interest in the Omani capital market.