Modern regulations set the stage for Omani capital markets growth

The new framework that replaces 2009’s Executive Regulations of the Capital Market Law aims to modernise Oman’s capital market, strengthening investor protection, supporting financial innovation, and enhancing the sector’s role as a key source of financing for the national economy.

The new regulations, published in the official Gazette on 26 July 2026 and immediately enforced, establish comprehensive, clear operational rules for exchanges, central securities depositories, clearing houses, and settlement systems, emphasising expanding financing options in the economy and enhancing flexibility to attract both domestic and foreign capital into the capital market.

It acts as a critical, foundational bridge that recognises 11 types of investment funds, including private equity and venture capital funds. It empowers the FSA to licence financial technology services and alternative instruments through a dedicated regulatory sandbox. It integrates strict mandates for capital adequacy, credit risk, market risk, and business continuity across all operating entities.

For financial institutions, commercial banks engaged in securities activities are required to legally separate those operations into independent subsidiaries within a three-year transitional period, with exceptions that allow banks to continue providing custody, trust, and underwriting services directly.

For the broader capital market, it implements an updated, unified rulebook that emphasises risk-based supervision, operational resilience, and enhanced market integrity, replacing fragmented guidelines, boosting fairness, integrity, and transparency, with a 6-month compliance window.

The new framework also introduces a dedicated regulatory regime for credit rating agencies to enhance transparency in risk assessment. Additionally, it overhauls capital market fees to reduce compliance burdens, favoring market competitiveness and encouraging broader participation from local and international investors.

Furthermore, the regulations formalise investment banking as a distinct activity, covering product structuring and research. This addition drives primary market liquidity, equipping financial institutions with the structural flexibility needed to stimulate ongoing capital market expansion.

By clarifying rules for primary market issuance, crowdfunding, and more, the framework provides favorable conditions for Oman’s capital markets to grow and improve its appeal.

Aligned directly with the strategic objectives of Oman Vision 2040, the structure shifts the market further toward a globally aligned ecosystem. By introducing robust clearing architectures, internationally compatible settlement systems, and transparent governance, it builds the structural prerequisites demanded by foreign institutional investors and brings Oman’s regulatory infrastructure closer to other mature global financial hubs.

· The writer is Oman-based coach and analyst in global financial markets