促进阿曼资本市场和机构投资者发展：阿曼（英）

Fostering Capital Marketsand Institutional InvestorDevelopment in Oman Thomas Pointek SIP/2025/033 IMF Selected Issues Papers are prepared by IMF staff asbackground documentation for periodic consultations withmember countries.It is based on the information available atthe time it was completed onDecember 18, 2024. This paper isalso published separately as IMF Country Report No 25/14. 2025APR IMF Selected Issues Paper Middle East and Central Asia Department Fostering Capital Markets and Institutional Investor Development in OmanPrepared by Thomas Pointek Authorized for distribution by Cesar SerraApril2025 IMF Selected Issues Papersare prepared by IMF staff as background documentation for periodicconsultations with member countries.It is based on the information available at the time it wascompleted on December 18, 2024. This paper is also published separately as IMF Country Report No25/14. ABSTRACT:Despite recent government-led initiatives to improve investor access and encourage participationby local businesses, capital markets in Oman remain relatively small and illiquid and the investor base remainsdominated by domestic banks and pension funds. This paper reviews the experiences of other emergingmarkets in developing local capital markets, and describes the challenges faced in the development of suchmarkets. The review shows establishing a functioning money and local currency bond market remains a criticalfirst step in successful capital markets' development, while several policy tools beyond tax incentives can beemployed to support participation in local markets. Increasing the presence of life insurance companies andreducing information asymmetries would help spur demand from a broader set of institutional investors. RECOMMENDED CITATION:Pointek, Thomas 2025. “Fostering Capital Markets and Institutional InvestorDevelopment in Oman.” IMF Selected Issues Paper (SIP/2025/033). Washington, D.C.: International MonetaryFund. Fostering Capital Markets andInstitutional Investor Developmentin Oman Oman Prepared by Thomas Pointek A. Context 1.Further access to capital markets and development of non-bank financial institutions (NBFIs)would support Oman’s efforts to spur private sector investment and strengthen growth. Well-developeddomestic capital markets foster efficient capital allocation along with better risk sharing. In addition, thepresence of institutional investors in the form of NBFIs that have different objectives in managing theirportfolios could make both the local bond and equity markets more dynamic. These efforts would promotegrowth by increasing private sector access to finance, including to undertake strategic projects underpinned byOman Vision 2040 (Sahay and others, 2015a; and IMF MCD REO, October 2024). Efficient domestic capitalmarkets can also help improve the conduct of fiscal and monetary policies (Laeven, 2014). 2.Capital markets in Oman remain relatively small and illiquid compared to other GCC countries (Kroen, 2024). The domestic bond market is small, with activity heavily concentrated in the primary market.Although the primary market for government bonds is seen as transparent and employs market-based pricing,its development is hindered by the sporadic nature of bond issuance that focuses on short-term maturities(Figure 1.1.1). In addition, the secondary market for government securities is almost entirely inactive due tolow market liquidity and no market-making system. Non-resident participation remains low due to the illiquidityand regulatory barriers such as the absence of over-the-counter (OTC) trading and lack of a link withEuroclear. Sukuk have only been issued periodically and the stock market significantly lags others in theregion in terms of market capitalization and trading volumes.1Moreover, stock market capitalization in Omanpersists at low levels due to factors such as the large share of state-owned enterprises (SOEs) and limitedgrowth in the number of listed firms, despite recent progress with IPOs (Figure 1.1.2). B. Recent Capital Markets Initiatives 3.Efforts are ongoing to develop the local currency bond market, supported by Fund technicalassistance. A key preliminary step involves reinvigorating the money markets, for which the Central Bank ofOman (CBO) is looking to reintroduce short-term certificates of deposit to improve liquidity management andstrengthen liquidity forecasting. Initiatives to enhance local debt market liquidity are underway, includingdeveloping a primary dealer system to improve price discovery and enhance market communication throughthe establishment of a more regular auction schedule. The financial market infrastructure and legal andregulatory frameworks relevant for government securities are assessed as being closer to later stages ofdevelopment, especially following the issuance of the new Public Debt Law that includes provisions related togovernance arrangements, investor relations, liquidity management operations, and Med