Oman FSA Unveils Capital Market Incentives Programme to Boost Economic Growth

Oman, 21 August, 2024 : The Financial Services Authority (FSA) of Oman has announced the Capital Market Incentives Programme, aimed at boosting the sultanate’s capital market and supporting Oman Vision 2040 goals. The initiative, endorsed by His Majesty Sultan Haitham bin Tarik, is designed to enhance the business environment, promote economic growth, and provide more investment opportunities for both local and international investors.

The programme, unveiled at a press conference on Sunday, consists of three key paths to be implemented over five years. Sheikh Abdullah Salem al Salmi, FSA Executive President, highlighted the role of the incentives in empowering the private sector to lead business activities and strengthen the Muscat Stock Exchange (MSX).

Path 1: Public Joint-Stock Companies

The first path offers incentives to encourage the creation of new public joint-stock companies and convert private firms with market value exceeding RO10 million into public entities. Companies listed on MSX will receive a two-thirds income tax refund for five years, installment options for tax payments, and a 10% price preference in government contracts for the same period.

Path 2: Promising Companies Market

The second path focuses on establishing a sub-market within MSX called the Promising Companies Market, targeting small and medium enterprises (SMEs) and emerging companies with market value above RO500,000. Incentives include a tax refund, installment options for income tax payments, and a 10% price preference in tenders. This market aims to support growth and alternative financing for SMEs.

Path 3: Conversion of LLCs

The third path targets limited liability companies (LLCs) with market value over RO500,000 and a workforce of at least 20 Omanis. These companies will receive a one-third tax refund and price preferences in government contracts for two years following conversion to closed joint-stock companies. Additionally, priority will be given for financing applications to the Development Bank.

The FSA expects to launch the Promising Companies Market by year-end, subject to regulatory approval.

Source : www.zawya.com