Rules issued for Promising Companies Market
MUSCAT, AUG 10
The Financial Services Authority (FSA) has announced the issuance of regulations for the Promising Companies Market, a dedicated sub-market within the Muscat Stock Exchange (MSX) created under Royal Decree No. 18/2025. This initiative is part of broader efforts to strengthen Oman's capital market framework, open new financing channels for national companies, and prepare them for a smooth, phased integration into the main market.
The regulations aim to create a well-defined legal and operational structure for listing promising enterprises—particularly startups, small and medium-sized enterprises (SMEs), and private or family-owned businesses—within a regulatory environment tailored to their needs. The framework provides financial and operational incentives to help such companies grow, improve governance, and achieve long-term sustainability.
Under the new rules, companies can join the Promising Companies Market via two pathways: direct listing or indirect listing.
Direct listing involves a company entering the market without raising capital or offering a portion of its shares for private subscription. To qualify, a firm must have recorded net profits over the past three years, achieved an average annual revenue growth of at least 14.4% during that period, and have a shareholder base of at least 20.
Indirect listing entails raising capital or offering at least 20% of the company's shares through a private subscription. This method requires a minimum of two years of operational and financial performance. Notably, companies still in the establishment phase can opt for indirect listing without meeting the two-year requirement or submitting audited financial statements, provided they fulfil other stipulated conditions.
The listing process has been designed for efficiency. Once all requirements are met, the FSA must respond to applications within three business days; if no reply is issued in that time, the application is deemed approved. However, the MSX reserves the right to delist companies that breach the regulations, following established procedures.
Participation in the Promising Companies Market is limited to specific categories of qualified investors, including securities firms, insurance companies, the Social Security Fund, investment funds, and high-net-worth individuals with significant financial or market expertise.
Companies listed on the market must comply with the International Financial Reporting Standards for Small and Medium-sized Enterprises (IFRS-SME). This includes disclosing unaudited semi-annual financial statements within 30 days of the half-year's end and audited annual statements within 90 days of the fiscal year's close. They must also adhere to rules governing the disclosure of material information.
To maintain market stability, founders' shares are subject to restrictions. For established companies, founders cannot sell shares for one year after listing, though up to 10% may be withdrawn under MSX guidelines. For companies under formation, share sales are prohibited until one fiscal year after registration, with possible extensions at the FSA's discretion.
The regulations also outline service fees for listing and issuance, designed to minimise financial burdens on eligible firms. According to the FSA, this framework is a milestone in implementing the Royal Decree and reflects national goals to empower the private sector, foster value-added enterprises, and create an attractive investment climate that broadens Oman's economic base. — ONA
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