Strengthening the MSX is a national imperative

Observer

6 days ago

The Muscat Stock Exchange (MSX) is working to strengthen the institution's activities to position it among the region's financial markets in the coming period and to attract more investments to the Omani capital market. Recently, the MSX, in cooperation with the Gulf Capital Markets Association (GCMA), hosted a financial conference attended by several prominent figures in the financial and investment sectors.
The conference focused on discussing the most prominent challenges and opportunities facing the region's financial markets in light of current economic and technological changes, and ways to develop a more efficient and attractive investment environment. The goal of this activity was to enhance the position of the Omani capital market, making it an advanced financial center, and to provide an integrated investment environment in line with international best practices.
The question raised in this regard is related to the causes required to make the Muscat Stock Exchange an attractive market for domestic and foreign investments, and to understand the challenges facing the market at this stage.
There are several factors that can be worked on to improve the stock market's operations and make it more attractive, including diversifying investment instruments and developing and expanding trading mechanisms and securities, such as providing investment funds and new financial instruments to increase diversity and attract a larger segment of investors. It is also crucial to enhance transparency and corporate governance standards and implement international standards to ensure the protection of investor rights and reduce risks.
Furthermore, it is important to improve the systems and technologies used in trading to provide a faster and safer environment, while relying on financial technology (FinTech), facilitating procedures, reducing bureaucracy, and improving registration and approval procedures to make the market more flexible and responsive to investor demands.
Finally, it is important to raise awareness about investment opportunities and the importance of sustainability and social responsibility to attract investors who focus on these standards. In addition, it is important to encourage foreign direct investment, issue legislation that encourages foreign investors, and provide incentives and facilitation for market entry.
The Omani stock market faces several challenges, including a lack of liquidity and weak trading volume, which reduces its attractiveness and limits investors' ability to enter and exit easily. It also relies heavily on changes occurring in the oil and energy sector, making the market vulnerable to global economic fluctuations. Some believe there is a need to further improve governance and disclosure standards, increase investor confidence, and close legislative gaps that could lead to uncertainty or reduce investment incentives.
They also believe there is a need to increase the number of financial institutions and related services to provide adequate investment support tools and mechanisms. It is also important to enhance financial literacy and raise awareness of the importance of long-term investment and sustainability. The market must have a comprehensive strategic vision focused on diversifying the economy and achieving political and regulatory stability to attract more investment.
In order to enhance the daily buying and selling activity in the Omani stock market and increase trading volume, there are several factors and methods that can be developed and improved, the most important of which are increasing market liquidity, improving the market's ability to provide diverse and attractive financial instruments, in addition to encouraging investors to submit their trades by offering incentive programmes, especially for individual investors that can increases investors' ability to execute transactions quickly and without delay.