MSM Transformation into SAOC Company Adds Independence and Enhances Efficiency

The key rationale that led to the transformation of the MSM into closed joint stock company owned by the Oman Investment Authority is that the Royal Decree would place Oman in a competitive and attractive position in line with the developments in the global stock markets which provide commercial services in consideration for commission and compete in rendering the services and facilities to their customers in addition to benefiting from safe investment opportunities to attract the capital of local and foreign investors.


The issuance of Royal Decree No. 5/2021 transforming MSM into closed joint stock company and liberating it from the regulator i.e. CMA meets one of the key international requirements that would augment its independence sought by international organizations such as the International Organization of Securities Commission (IOSCO), International Monetary Fund (IMF) and the World Bank (WB). The separation of the MSM and its independence is one of the key governance practices in the management structure of the capital market sector and enables the MSM to carry out its activities with high professionalism and objectivity.

The rationale for transformation is that several studies and organizations recommended transformation of MSM into joint stock company in order to facilitate offering its shares to the public as one of the means for increasing the efficiency and investor confidence. The World Federation of Stock Exchanges has pointed out in its statistics that the global trend is to transform the global stock exchanges into companies as best practice for regulation of capital market and in view of the experience of the neighboring markets in Abu Dhabi, Dubai, Qatar, Bahrain, Saudi Arabia and Kuwait who are owned by the sovereign funds in these countries and some have transformed into public joint stock company after a public offering such as Dubai Stock Exchange.