Muscat Stock Exchange added to FTSE Russell watchlist

Muscat: The entry of the Omani capital market (Muscat Stock Exchange) into the FTSE Russell watchlist represents an important phase in the course of the market's development and the enhancement of its presence on the global investment map. Being placed on the watchlist means that the market has become subject to monitoring and evaluation by the institution to consider the possibility of reclassifying it in the future according to its approved market classification methodology and criteria.

Building on this positive step, FTSE Russell will continue during the upcoming phase to monitor MSX’s performance and its sustained fulfillment of quantitative and qualitative requirements, alongside consulting with international investment institutions regarding their actual experience in entering and investing in the market. This phase derives its importance from the prestige that FTSE Russell indices hold within the global investment community, where asset managers, institutions, and international investors use them as a benchmark for constructing and tracking investment portfolios and measuring market performance.

In classifying markets, FTSE Russell relies on a comprehensive evaluation that is not limited to index performance or trading levels, but also encompasses the regulatory environment, the efficiency of market infrastructure, trading, settlement, and custody mechanisms, the ease of entry and exit for international investors, the availability of information and market transparency, as well as the size of the investable market and the number of securities eligible for its indices.

Entering the watchlist is set to place the Omani market to a greater extent within the monitoring scope of the international investment community, as asset managers and investment institutions begin closely following market developments and market access requirements in light of a potential future change in its classification.

Mohammed Mahfoudh Al Ardhi, Chairman of the Board of Directors of the Muscat Stock Exchange (MSX), said that the inclusion of the Muscat Stock Exchange on the FTSE Russell watchlist represents an important milestone in the development journey of the Omani capital market. He noted that it reflects the institutional and regulatory progress achieved in recent years, which has contributed to enhancing market efficiency, elevating its readiness, and expanding its presence before the international investment community.

He also emphasised that the development path that began with the restructuring of the exchange and its transformation into a company owned by Oman Investment Authority is moving toward building a deeper and more competitive capital market, capable of keeping pace with rapid transformations in global markets.

He added that this step is viewed as the beginning of a new phase requiring continued building upon achieved progress and deepening integration among various stakeholders in the capital market ecosystem. This will enhance the exchange's role in supporting economic diversification targets, directing capital toward promising opportunities, and connecting the Omani economy to a broader base of investors and investment institutions around the world. He stated that the ambition extends beyond attaining the "Secondary Emerging Markets" classification to establishing an efficient, resilient, and sustainable capital market that matches the aspirations of the Sultanate of Oman and its economic standing.

Haitham Salim Al Salmi, CEO of the Muscat Stock Exchange, said that entering the FTSE Russell watchlist places the exchange at a more advanced stage in the market's trajectory, as focus shifts from building the foundations of readiness to consolidating and sustaining them, and working to fulfill the requirements that enhance opportunities for reclassification and upgrade to the Secondary Emerging Markets category.

He added that the importance of this step lies in providing broader visibility for the Omani capital market sector before global investment institutions and asset managers, while simultaneously requiring continued elevation of market efficiency, depth, and capacity to accommodate broader investment participation.

He pointed out that attaining a new classification would expand the international investment base in the market, enhance its ability to attract capital, and solidify its role as a platform connecting investment opportunities in the Sultanate of Oman, upcoming initial public offerings (IPOs), and new listings to a broader base of investors around the world.

Furthermore, the entry of the Muscat Stock Exchange into the watchlist opens broader horizons to enhance the presence of the Omani market on the global institutional investment map, given the massive assets managed by investment funds tracking FTSE Emerging Markets indices. Data from several of the most prominent funds indicate asset sizes in the billions of dollars, while the markets of GCC countries combined account for a weight of approximately 6.07 percent in the FTSE Emerging Index as of 31 August 2026 data, excluding the Omani and Bahraini markets, which remain classified as Frontier Markets. Any future reclassification of the Omani market and assignment of an index weight to it would allow a portion of the capital tracking the index to be allocated to Omani equities, thereby boosting opportunities to attract new institutional investment inflows and supporting market depth, liquidity, and presence on the global markets map.

Under the umbrella of Oman Investment Authority, and supervised by the National Programme for Financial Sustainability and Financial Sector Development (Estidamah), in cooperation with the Financial Services Authority, Muscat Clearing and Depository Company, the Social Protection Fund, and brokerage firms operating in the Omani market, the Muscat Stock Exchange continues working to develop the capital market system and enhance its efficiency and competitiveness. This is pursued through improving the investor experience, boosting liquidity and market depth, developing infrastructure and investment products, and facilitating access for local and international investment institutions. Reaching the watchlist represents a stage within an integrated market development path, while any decision regarding reclassification remains subject to FTSE Russell's evaluation and the extent and sustainability of meeting its approved requirements.

These efforts align with the objectives of Muscat Stock Exchange aimed at enhancing the standing of the Omani capital market regionally and internationally, expanding the investor base, and increasing the attractiveness of listed companies to institutional capital, thereby strengthening the role of the capital market in supporting economic growth and diversification in the Sultanate of Oman.