Muscat: HH Sayyid Bilarab bin Haitham Al Said today presided over the launch of the Alternative Investment Market (AIM) at the Muscat Stock Exchange (MSX). This initiative is part of an integrated partnership with the National Programme for Financial Sustainability and Financial Sector Development ‘Estidamah’, along with several government entities including the Ministry of Commerce, Industry and Investment Promotion, the Financial Services Authority, the Small and Medium Enterprises Development Authority, and Muscat Clearing and Depository.
According to Oman News Agency, the market aims to open new financing and investment opportunities to support private sector companies, including family-owned small and medium enterprises with growth and expansion plans. The launch of the Alternative Investment Market aligns with the Royal directives of His Majesty Sultan Haitham bin Tarik in May 2024 regarding the implementation of the Capital Market Incentive Programme. This programme aims to empower the private sector by providing a package of incentives to encourage companies to list in the capital market, aligning with Oman Vision 2040.
The AIM represents the second track of the Capital Market Incentive Programme, serving as an innovative financing and investment platform targeting small and medium enterprises (SMEs). It simplifies listing requirements and offers tax, marketing, and operational incentives, contributing to the growth of these companies, enhancing their transparency and governance, and building investor confidence.
During the current phase, Bawareq Nizwa International Investment Company will be listed on the AIM through direct listing. Three other companies are working towards indirect listing by offering their shares to qualified investors, namely Nafath for Renewable Energy, Mays for Cars, and the Omani Company for Insecticides and Air Fresheners. The third track of the programme involves encouraging companies to convert into closed joint-stock companies as a preliminary step towards potential future public listing on the capital markets.
Several limited liability companies have transitioned to closed joint-stock companies, including Saud Bahwan Holding and Al Rawas Holding, alongside startups such as Ibn Firnas Drone Centre and Computer Stationery Industry Company. This reflects the expansion of involving various sectors within the economic development framework.
The Capital Market Incentive Programme spans five years, allowing for gradual execution of initiatives and ensuring achievement of set goals in market development and enhancing investment attractiveness.
Mahmood bin Abdullah Al Aweini, Secretary-General of the Ministry of Finance and Supervisor of Estidamah, noted that Estidamah oversees supporting government efforts in several strategic pillars for financial sector development, including enhancing the MSX’s attractiveness to local and foreign investments.
The AIM is expected to contribute to achieving its outlined goals by providing an innovative financing platform for SMEs and enhancing corporate governance and transparency. Abdullah bin Salim Al Salmi, Executive President of the Financial Services Authority, affirmed that the launch of the AIM builds upon the Royal directive for the Capital Market Incentive Programme, embodying the government’s commitment to developing the business environment.
Haitham bin Salim Al Salmi, CEO of MSX, emphasised that the AIM launch reflects confidence in the potential of scale-ups and their ability to grow. He highlighted that listing companies on this market aims to provide diverse financing options, contributing to business expansion and sustainability.
Mohammed bin Said Al Abri, CEO of Muscat Clearing and Depository, explained that the launch of the AIM is an important step in Oman’s capital market development, providing new opportunities for entrepreneurs and start-ups. Muscat Clearing and Depository has worked on updating systems to accommodate the new market’s requirements, ensuring operational efficiency.
The launch of the AIM represents a strategic step towards developing the capital market ecosystem in Oman, enhancing its contribution to economic growth, and solidifying Oman’s position as a promising investment destination based on transparency and financial sustainability.