Muscat, (Business News Report)|| The Muscat Stock Exchange plans to allow foreigners to obtain full ownership of listed companies, in a move aimed at attracting cash flows to the Omani market.
The Muscat Clearing and Depository Company has completed the procedures for canceling ownership percentages for foreign investment for companies listed on the stock exchange.
The Muscat Stock Exchange confirmed that abolishing the limits of ownership rates for foreign investment will pave the way for it to pass the standards of international evaluation institutions related to the ease of investment and openness to foreign investors.
The move will make the bourse “more attractive to international investors” and provide them with a more flexible environment for their investments, it said.
The CEO of the Oman Stock Exchange, Haitham Al-Salmi, said in previous press statements that “the Omani Stock Exchange plans to list 35 state-owned companies in the next five years for public subscription.”
It is worth noting that most of the companies listed on the Gulf stock markets, especially Saudi Arabia and the UAE, are owned by families or are government companies.
Qatar preceded the Sultanate of Oman to its last step. In August of last year, the Qatari government approved the ownership of non-Qataris in the capital of the Qatar National Bank Group, Qatar Islamic Bank, Commercial Bank and Masraf Al Rayan to reach 100%.
The Qatar Stock Exchange witnessed a strong recovery in its indices when the decision was announced, which reflects its importance to increasing investment attractiveness.
Oman announced the addition of $1.7 billion to its budget for the current year 2022, as part of the five-year plan, while it is scheduled to add ($520 million) to the development budget.
The Omani Ministry of Economy stated, in a statement reported by the official news agency, that the allocations for the development budget for the current year rose to 1.2 billion riyals ($3.12 billion) after increasing it by 200 million riyals, explaining that the step comes to “support the economic performance of the Sultanate of Oman.”
The ministry said that Sultan Haitham bin Tariq also directed to add more than 650 million Omani riyals ($1.7 billion), to implement additional projects in the five-year plan that ends in 2025.