Modern regulations set the stage for Omani capital markets growth

Oman's capital markets are set for significant growth following the introduction of new regulations designed to modernize the sector. These updated rules, which replaced the 2009 Executive Regulations of the Capital Market Law, were published on July 26, 2026, and are immediately effective.

The framework establishes comprehensive and clear operational guidelines for exchanges, central securities depositories, clearing houses, and settlement systems. It emphasizes expanding financing options and attracting both domestic and foreign capital. A key feature is its recognition of 11 types of investment funds, including private equity and venture capital, and its empowerment of the Financial Services Authority (FSA) to license fintech services and alternative instruments through a regulatory sandbox.

Financial institutions, particularly commercial banks involved in securities activities, will have a three-year transitional period to legally separate these operations into independent subsidiaries. The new regulations also implement a unified rulebook that focuses on risk-based supervision, operational resilience, and enhanced market integrity, replacing fragmented guidelines. A six-month compliance window is provided for market participants.

Furthermore, the regulations introduce a dedicated regime for credit rating agencies to improve transparency in risk assessment and overhaul capital market fees to reduce compliance burdens. Investment banking is formalized as a distinct activity, covering product structuring and research, which is expected to drive primary market liquidity. These changes align with Oman Vision 2040, aiming to create a globally aligned ecosystem and attract foreign institutional investors by building structural prerequisites compatible with mature global financial hubs.