Interview: Abdulaziz Al Balushi
How are capital markets well positioned to attract investment both regionally and internationally?
ABDULAZIZ AL BALUSHI: Oman’s capital markets are distinguished by attractive valuations and a strong growth trajectory, bolstered by improved credit ratings that have boosted investor confidence. The Financial Services Authority (FSA) has implemented progressive reforms, notably revising foreign ownership limits and opening opportunities for domestic and global investors. In tandem with efforts to secure the country’s position in the emerging market index, these efforts make Oman’s capital markets attractive to global investors.
Alongside an increase in bond offerings, anticipated high-yield initial public offerings contribute to market liquidity and diversification, while a broader investor base – both institutional and retail – will strengthen market resilience. Furthermore, the agility and adapt-ability of the FSA and the Muscat Stock Exchange provide investors with assurance, allowing them to navigate local market dynamics with greater flexibility. This investor-centric approach is helping to solidify Oman’s position as a competitive and attractive destination within the broader GCC capital markets ecosystem.
What strategies can be utilised to enhance financial literacy and increase retail investor participation?
AL BALUSHI: Oman’s social dynamics have traditionally been oriented towards consumption, so pivoting to an investment-aware culture requires a multi-pronged approach. The first step is to cultivate a culture of saving by emphasising the long-term benefits of financial planning. Once this foundation is in place, introducing a broader range of investment options, such as stocks, mutual funds and exchange-traded funds, will provide more opportunities for retail investors and help them move beyond conventional fixed deposits, as they have consistently demonstrated superior returns.
Transitioning away from a consumption-driven mindset requires more than just education – it demands real-world success stories that inspire trust and confidence in the investment process. At the same time, technology must play a key role in making investing user-friendly and intuitive, as well as routine digital tasks, such as ordering food or booking a taxi.
The financial sector must take the lead in expanding investment choices. Commercial lenders and investment firms should diversify their offerings to include assets that cater to different risk appetites and financial goals. By combining education, technology and investment products, Oman can broaden retail investor participation and strengthen its capital markets.
To what extent is Oman aligning its capital markets with international best practices?
AL BALUSHI: Oman is actively aligning its capital markets with international best practices through the FSA’s progressive initiatives. An important step in this process is the requirement for organisations to appoint experienced investor relations officers. These officers are crucial in enhancing transparency and communication, ensuring that investor queries and concerns are addressed promptly and openly.
Furthermore, the FSA is leveraging technology to enhance transparency. By implementing protocols for online investor conferences, particularly after financial disclosures, the authority has modernised investor engagement, allowing stakeholders to interact directly with companies. This reflects a commitment to global best practices in market accessibility and transparency.
Another cornerstone of the FSA’s governance framework is its emphasis on the role of independent compliance officers within companies. By advocating for strong internal controls and strict adherence to regulatory standards, the FSA is ensuring that Oman’s corporate governance aligns with international benchmarks. This reinforces market integrity and investor confidence, positioning Oman’s capital markets as a competitive and well-regulated investment destination.
