Interview: Abdullah Al Salmi
To what extent can capital markets contribute to the diversification goals of Oman Vision 2040?
ABDULLAH AL SALMI: Capital markets are pivotal in financing economic diversification under Oman Vision 2040. We have seen significant progress in recent years in channelling funds from the capital markets to help support economic projects, with financing provided by these markets outpacing that of the banking sector. For example, from 2018-23, capital market funding was more than four times greater than the value provided by the banking sector for corporate projects. This demonstrates the increasing reliance on capital markets as a long-term financing mechanism, particularly for large-scale projects. By facilitating initial public offerings and innovative instruments including bonds and sukuk (Islamic bonds), the markets are fostering investment in sectors beyond oil and gas.
How is international collaboration shaping regulatory practices and enhancing global integration?
AL SALMI: Global alliances are essential for enhancing regulatory frameworks and integrating Oman’s financial sector into the global economy, for example, our partnership with the Astana International Financial Centre. Cooperation with the Abu Dhabi and Bahrain exchanges through the Mubadala platform allows brokers to execute transactions across all three exchanges. This cross-border collaboration should improve liquidity and attract global investors. We are aligning regulatory practices with global standards, such as those set by the International Organisation of Securities Commissions (IOSCO). We comply with 97% of IOSCO principles, and efforts are under way to achieve full compliance.
In what ways can regulations balance the need for technological innovation while also maintaining stability and mitigating risk?
AL SALMI: Balancing technological innovation with market stability requires a proactive yet cautious approach. We are actively licensing financial technology platforms and collaborating with the Central Bank of Oman on shared priorities.
Furthermore, Oman’s legal framework is evolving to accommodate emerging technologies. For instance, we are finalising regulations for virtual assets, ensuring that innovation can thrive within a structured and secure environment. To address the fast pace of technological change, temporary licenses for new financial technologies allow us to monitor and adapt while developing permanent regulations.
What more can be done to encourage listed companies to adopt sustainability practices?
AL SALMI: Encouraging sustainability practices among listed companies is a priority in Oman’s transition toward a net-zero economy by 2050. From a regulatory standpoint, firms are required to report on their environmental, social and governance activities, a process closely monitored by the Muscat Stock Exchange and regulatory authorities. In addition, we are promoting green financial products, including green bonds and sukuk, to align with sustainable investment trends.
By what means can financial literacy and education be enhanced across the sultanate?
AL SALMI: Financial literacy is critical to increasing market participation, especially among new and less experienced investors. One major initiative is digitalising access to capital markets. By requiring licensed firms to offer electronic platforms for account opening and trading, we have made it easier for investors to enter the market. Moreover, we are working with the central depository to integrate processes so investors can seamlessly open accounts and start trading through a single platform. However, more can be done to provide educational resources, such as workshops, digital content and targeted campaigns, to simplify investment processes and build confidence among retail investors.
