Oman’s FSA Launches Capital Market Incentives Programme to Boost Economic Growth

Oman, 14 August, 2024 : Oman's Financial Services Authority (FSA) announced the Capital Market Incentives Programme, aimed at boosting capital market activity and supporting Oman Vision 2040. The programme, endorsed by His Majesty Sultan Haitham bin Tarik, will run for five years and focuses on stimulating the capital market's role in the economy and attracting both local and foreign investments.

The initiative will be implemented through three key paths:

1. New Joint-Stock Companies: Incentives will encourage the creation of new public joint-stock companies and the conversion of private firms with market values over RO10mn. Benefits include a two-thirds tax refund for five years post-listing on Muscat Stock Exchange (MSX) and a 10% price preference in government contracts.

2. Promising Companies Market: A sub-market within MSX will target private, family-owned, and SME companies valued over RO500,000. Similar tax incentives and contract preferences will apply, with the market expected to launch by the end of the year.

3. Conversion of LLCs: Incentives will encourage limited liability companies to convert into closed joint-stock companies. Companies meeting specific criteria will receive tax refunds and preferences in government contracts.

Sheikh Abdullah Salem al Salmi, FSA Executive President, emphasized the initiative's role in diversifying the economy and strengthening the MSX.

Source : www.muscatdaily.com