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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2005
MUSCAT SECURITIES MARKET
Ahmed Saleh Al-Marhoon
Director General
We are consciously working on developing
and operating an efficient and transparent
securities market to the best standard
expected by our local and foreign investors.
We believe that exchanges that adhere to
good governance, greater transparency and
greater accountability, are able to foster
investors’ confidence as well as creating an
attractive investment environment.
We at Muscat Securities Market (MSM),
however, have devised a comprehensive
road map that enables us to build capacity
and promote sustainable capital market
development strategy specifically aimed at
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 securities industry in
Oman is well established to enhance
investors’ confidence by developing and
improving all the processes pertaining to the
stock market.
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We believe that exchanges that adhere to
good governance, greater transparency and
greater accountability, are able to foster
investors’ confidence as well as creating an
attractive investment environment.
improving access to the regional and
international capital markets.
In view of the above, MSM recently revised
its legislation with respect to listing, trading
and clearance and settlement regulations to
enable MSM to cater for our market demand.
One of our eminent projects is to replace the
MSM existing trading system with Aots-
Euronext Trading System that is used by
some western and other emerging stock
markets.
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.
We expect that the new trading system will
be implemented at the end of 2005 and will,
inevitably, enhance the capability of MSM
and make it the first exchange in the GCC
countries that uses this advanced trading
system.
We are in the process of upgrading MSM
website to improve the navigation, content
and overall value of the website for users.
FUTURE OUTLOOK
In 2005 MSM plans to:
• develop policies and strategies to provide
both domestic and foreign investors with
reasonably reliable savings and investment
opportunities;
• revise the legislations of the market with
regard to the listing, trading and clearance
and settlement mechanisms. In order to
ensure a sustainable stock market
development strategy, aimed at improving
access to the regional and international
capital markets, we are in the process of
implementing a comprehensive Growth-
Plan;
• replace the existing MSM trading system
with Aots–Euronext Trading System, which is
in place in some of the Western and other
Emerging Stock Markets; and
• make the information dissemination more
efficient, we are also in the process of
upgrading the MSM website.