Muscat Stock Exchange Moves Toward Emerging Markets: Today’s Achievement Is the Culmination of Years of Effort

Fayez bin Abdullah Al-Balushi **

FTSE Russell’s announcement that the Muscat Stock Exchange has been placed on the watchlist—paving the way for a potential upgrade to the "Secondary Emerging Market" category—marks a significant milestone in the evolution of Oman’s capital market.

For those who have witnessed this journey through its various stages, the announcement holds special significance that transcends mere international classification. This achievement was not the product of recent years alone; rather, it was preceded by years of dedicated effort, studies, and initiatives involving numerous specialists and institutions, all aimed at elevating the Omani market to a more advanced level.

The story began with the former Muscat Securities Market, where the requirements for upgrading the market's classification were central to discussions on market development, the identification of challenges and gaps, and the search for solutions to enhance efficiency and investor appeal.

In subsequent stages—accompanied by institutional transformation and the launch of the National Program for Financial Sustainability and Financial Sector Development ("Istidama")—the scope of work expanded. It shifted toward developing the financial sector ecosystem from a broader national perspective, involving the diagnosis of challenges, the formulation of initiatives and policies, and the creation of a development roadmap in collaboration with relevant institutions.

My professional experience allowed me to play a part in these stages, working alongside colleagues and national experts to study and discuss various challenges and solutions, and to lead a range of initiatives aimed at developing the capital market. It is gratifying to see that many issues—once merely topics of discussion at the negotiating table years ago—have now become development priorities, with the results of cumulative institutional efforts beginning to materialize on the ground.

Undoubtedly, the high-level attention paid by His Majesty Sultan Haitham bin Tarik—may God protect and preserve him—to developing the financial sector and bolstering the role of the capital market within the framework of Oman Vision 2040 has served as a vital cornerstone for driving development and translating strategic directives into practical programs and initiatives.

What we are witnessing today confirms that market development is not the result of a single decision or isolated initiative; rather, it is the fruit of accumulated knowledge and expertise, sustained effort, integrated roles, and the ability to turn visions and studies into reality. We must commend the collaborative role played by the entities contributing to this journey—foremost among them the Financial Services Authority, the Oman Investment Authority, the Ministry of Finance, the National Program for Financial Sustainability and Financial Sector Development ("Istidama"), and the Muscat Clearing and Depository Company, alongside market institutions, professionals, and everyone who has helped build and develop this ecosystem over the years.

While the Sultanate of Oman’s inclusion on the watchlist does not yet signify a final upgrade, it represents a significant step that reflects the progress achieved and opens broader horizons for enhancing the Omani market's profile among global investment institutions. The primary challenge ahead lies in building upon this progress—deepening the market, boosting liquidity, and diversifying investment instruments—to ensure the sustainability of its development and competitiveness. We extend our sincere appreciation to those who laid the initial foundations, those who continued to build upon them, and those who are leading the journey of development. Great achievements are neither built in a day nor realized through individual effort alone; rather, they are forged through complementary visions and cumulative efforts spanning the years.

General Manager – Jabal Asset Management Company