MUSCAT SECURITIES MARKET
The Muscat Securities Market (MSM) was
established by Royal Decree No. 53/88, issued
on 21 June 1988. It is a government entity that
has its own financial and administrative rules
and regulations. The MSM has an independent
board of directors that consists of seven
members, three of whom are appointed by the
CMA and the remaining four are elected.
Ahmed Saleh Al-Marhoon
Director General
New rules and
regulations have been
promulgated to enhance
disclosure and
transparency as well as
adherence to corporate
governance.
The main objectives of the MSM are to organize
and develop the securities market by creating
the most favorable conditions for investors.
Thus new rules and regulations have been
promulgated to enhance disclosure and
transparency as well as adherence to corporate
governance. The information technology
systems have been employed to comply with
the latest international development standards.
HISTORY AND DEVELOPMENT
The Muscat Securities Market (MSM) was
established by Royal Decree issued on 21 June
1988 to regulate and control the Omani
securities market and to participate, effectively,
with other organizations for the setting up of the
infrastructure of the Sultanate’s financial sector.
After ten years of continuous growth there was
a need for a better functioning of the market.
The MSM has been restructured by two Royal
Decrees (80/98) and (82/98).
Royal Decree (80/98) dated 9 November 1998,
which promulgated the new Capital Market Law,
provides for the establishment of two separate
entities: an exchange – the Muscat Securities
Market (MSM) – where all listed securities will
be traded, and the Capital Market Authority
(CMA) – the regulatory body. The exchange is a
governmental entity, financially and
administratively independent from the regulatory
body but subject to its supervision. Thus the
The government of Oman has adopted
comprehensive reformatory policies for
securing the transparency and flow of foreign
investment to the Sultanate of Oman.
FUTURE OUTLOOK
securities industry in Oman is well established
to enhance investors’ confidence by developing
and improving all the processes pertaining to
the stock market.
There are recent amendments to the Capital
Market Law and its executive regulation, which
aim at enhancing the efficiency and
transparency as well as securing the integrity of
the market. The recent enactment of the code
of corporate governance and other rules and
regulations, during the current year, has a clear
effect on the investors’ confidence on the
market and is positively reflected in the market
index movement.
Plans for 2004 include:
• holding a forum at the Oman International
Exhibition Center with Sultan Qaboos
University and the Ministries of Higher
Education, Education, and Manpower, with
participation of intermediaries and specialized
financial companies;
• ascertaining, through a questionnaire, public
opinion on the restoration of confidence in the
market and the level of satisfaction about
current laws and legislation;
• promoting the recently introduced
information center services and the new
equipment on the floor;
• participating in Gulf exhibitions in Saudi
Arabia and Kuwait to introduce the market;
• with the Ministry of Education, training
teachers on investment mechanisms and the
role of intermediaries in the execution of
transactions;
• holding discussions with the participation of
the press, intermediaries and investment
companies to increase disclosures and
transparency of public joint-stock companies,
• reporting weekly on the market, including
interviews with brokers;
• conducting educational seminars with major
institutions such as PDO and LNG; and in
universities and colleges in Oman with the
participation of brokers and market officials
and for Omani media on financial reporting:
• publishing booklets and CDs for students;
and
• organizing visits and internships for students
to educate them on investing.
FEDERATION OF EURO-ASIAN STOCK EXCHANGES YEARBOOK 2003/2004
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