ع
The Financial Services Authority issued the Executive Regulation of the Securities Law under Decision No. E/11/2026, which took effect on July 27, 2026. According to the FSA, banks licensed to conduct securities activities must transfer those operations to legally independent entities within three years. The regulation replaces rules from 2009 and implements Royal Decree No. 46/2022 on the Securities Law. This change excludes custody, trust services and underwriting from the separation mandate.
FSA officials stated that the separation aims to reduce conflicts of interest, limit risk transmission between commercial banking and investment activities, and clarify regulatory responsibilities. The authority’s Vice Executive President Ahmed bin Ali al Maamari told Oman News Agency that the framework establishes investment banking as a regulated activity. It also sets detailed requirements for capital market institutions including minimum capital levels. The rules seek to support Oman Vision 2040 by enhancing the capital market’s role in financing the economy.
Under the new provisions, licensed investment banks can provide investment management, product structuring, securities portfolio management, research, advisory services related to listed securities and issue management. They may also underwrite approved securities offerings. The FSA has directed that other capital market institutions and securities entities regularise their status within six months, with a deadline of January 27, 2027. Banks have the longer transition to allow for comprehensive reorganisation of governance, compliance and systems.
The regulation forms part of a broader effort to modernise Oman’s capital market, attract investment and promote innovative financial instruments. According to FSA assessments published in regulatory announcements, the measures will improve investor protection and market efficiency. Existing instructions remain valid until new forms and circulars are issued, provided they align with the updated law. The authority’s executive president has been tasked with issuing necessary implementation guidance.
This development was detailed in reports by Zawya and the Oman Observer in September 2026, highlighting the three-year window for banks. The FSA emphasised that banks can retain full ownership of the new independent securities entities. The approach enables the sector to evolve with financial technology advancements while maintaining market integrity.
