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The Financial Services Authority announced on July 26 2026 that its board chairman H E Dr Khamis bin Saif Al Jabri had approved the Executive Regulation of the Securities Law which implements the general provisions of Royal Decree No 46/2022. The framework seeks to update Oman’s capital markets to handle rapid changes driven by financial technology and new investment products while reinforcing principles of fairness integrity and transparency. According to the FSA the changes will support broader economic activity by expanding financing options and strengthening investor confidence across the sector.
The regulation is organised into seven chapters that address definitions and general provisions capital market institutions operating entities and their licensing requirements credit rating agencies collective investment schemes issuing entities with disclosure obligations market integrity rules and the operations of a Grievance Committee for appeals. It expands the scope of permitted investment banking activities and sets detailed requirements for entities involved in securities issuance and trading. The FSA stated that the new rules will enable institutions to adapt to evolving market demands while maintaining robust oversight.
A regulatory sandbox forms a central element of the overhaul allowing the authority to license activities involving modern financial technologies and innovative instruments where dedicated legislation does not yet exist. The framework also introduces specific provisions for crowdfunding platforms and the licensing and conduct of credit rating agencies. FSA officials noted that collective investment schemes have been broadened to encompass 11 distinct categories including vehicles for private equity and venture capital to channel capital into national projects.
Capital market institutions and securities sector entities must align their operations with the regulation within six months of its entry into force which occurred the day after publication in the Official Gazette. Licensed banks performing securities-related activities received a transitional period of up to three years to conduct those operations through independent entities although custody safekeeping and underwriting can remain combined with commercial banking under defined exceptions. The FSA directed its executive president to issue any necessary instructions forms and circulars to support implementation and confirmed that existing guidance will continue where it does not conflict with the new rules.
Oman Investment Authority figures show the Muscat Stock Exchange’s market capitalisation rose 51 per cent from OR20.24 billion in 2020 to OR30.53 billion by October 2025 while annual trading volumes increased fivefold over the same period. These gains reflect earlier reforms that converted the exchange into a closed joint stock company owned by the authority and injected liquidity through dedicated funds. The latest regulations build on that momentum by aligning the legal framework with Oman Vision 2040 objectives that prioritise economic diversification reduced reliance on hydrocarbons and enhanced private sector participation.
Ahmed Al Mamari the authority’s vice executive president said We aim to strengthen the capital market’s readiness to drive higher levels of performance by providing a diverse and innovative financing and investment environment that enhances its competitiveness in line with the growth of the country’s economy. The FSA emphasised that the measures will attract both local and foreign capital by creating a more competitive and resilient marketplace. Entities operating in the sector now have a clear compliance roadmap to integrate the updated standards into their governance and risk management practices.
