Interview: Haitham Al Salmi
In what ways does the Vision 2040 roadmap impact capital markets and investor confidence in the face of global economic uncertainties?
HAITHAM AL SALMI: Despite global uncertainties like oil price fluctuations and geopolitical tensions, the GCC’s strategic investment has made the region a beacon for investors. In particular, Vision 2040’s strategic push to reduce dependency on hydrocarbons and foster growth in the non-oil sector has led to diversification efforts that positively affect capital markets. This shift allows for alternative financing avenues and encourages government divestment from mature companies in favour of more sustainable projects. Furthermore, this transition enhances the market’s liquidity, attracting a more diverse pool of investors.
By what means do government entities going public affect market liquidity and the attractiveness of capital markets for global investors?
AL SALMI: The initial public offering (IPO) programme for government-owned enterprises is dramatically improving market liquidity and making Oman’s capital markets more attractive to global investors. This initiative divests mature companies in sectors such as oilfield services and aligns the market index with the economy’s diversification agenda. The substantial interest from foreign investors in recent IPOs underscores the global appetite for Omani assets, reflecting the plan’s success in enhancing the market’s depth and global appeal.
What are the priorities with respect to achieving MSCI emerging market status, and where do you identify challenges to realising this goal?
AL SALMI: The main priority is to increase investable capital by removing restrictions on foreign investment and boosting market accessibility. Having met many of MSCI’s technical requirements, the current focus is on improving market capitalisation, free float and trading volumes. By focusing on these factors and by introducing liquidity providers, we aim to adjust stock price discounts and achieve the required trading volumes, which are essential for MSCI watchlist inclusion. This will raise Oman’s profile among global investors.
Confronting the challenges on this path, such as promoting consistent trading volumes and ensuring the regulatory environment supports market growth and investor confidence, remains a priority. The introduction of liquidity providers and ongoing market reforms are critical in navigating these hurdles. By increasing market liquidity and maintaining an open, growth-supportive regulatory landscape, we are steadfast in pursuing MSCI’s emerging market status, positioning Oman as an attractive destination for global investors.
How can regulatory authorities encourage listed companies to align with sustainable principles?
AL SALMI: Oman’s authorities encourage environmental, social and governance (ESG) alignment through initiatives like ESG disclosure platforms and guidelines. Efforts include developing green finance projects and connecting to global voluntary certificate trading platforms, which, along with incentives for green bond issuance, aim to embed ESG principles within Oman’s capital markets. These steps, coupled with the government’s eco-friendly initiatives, reflect a comprehensive strategy for integrating ESG into the financial sector.
To what extent is technology reshaping the trading landscape and efficiency of Oman’s capital markets?
AL SALMI: Technology is pivotal in enhancing the efficiency and trustworthiness of Oman’s capital markets. Through innovations like blockchain for voting systems and digital platforms for investor engagement, we are making the market more accessible and secure. While prioritising upgrades to achieve emerging market status, we are also exploring innovations like digital assets. This balanced approach fosters innovation while maintaining market stability and attractiveness for investors.
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