Oman adopts new securities law to strengthen capital market

Oman is strengthening its capital market by adopting a new Executive Regulation for its Securities Law. The Financial Services Authority (FSA) announced the regulation, which provides a detailed legislative framework for implementing the general rules outlined in Royal Decree No. 46/2022.

The move is designed to ensure legislative and technical readiness to boost the performance of Oman's capital market institutions and securities entities. This upgrade aims to help them adapt to the rapid evolution driven by financial technology and innovative financial instruments, ensuring competitiveness in the global financial landscape.

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The move aims to achieve legislative and technical readiness to elevate the performance of capital market institutions and securities entities in the Sultanate of Oman, enabling them to keep pace with rapid developments driven by financial technology and innovative financial instruments.

The regulation is comprehensive, covering seven chapters. These include definitions, general provisions, capital market institutions, licensing and obligations of operating entities, credit rating agencies, collective investment schemes, disclosure requirements, market integrity, and a Grievance Committee for appeals. A key focus is on providing competitive financing options and enhancing the flexibility to attract both local and foreign capital.

This initiative underscores Oman's commitment to supporting national economic activities and bolstering investor confidence through principles of fairness, integrity, and transparency. The regulation will come into force following its publication in the Official Gazette. Capital market institutions and securities entities will have six months to align their operations with the new rules, while licensed banking institutions involved in securities activities will have up to three years to adjust, with specific provisions for custody, safekeeping, and underwriting services.

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The regulation attaches significant importance to providing competitive financing options within the national economy and enhancing flexibility to attract local and foreign capital to the capital market sector, thereby supporting national economic activities and boosting investor confidence through principles of fairness, integrity, and transparency.