Muscat:The Muscat Stock Exchange (MSX) has been added to the FTSE Russell watchlist, marking a significant milestone in the development of the Omani capital market. This inclusion signals that the market will undergo monitoring and evaluation by FTSE Russell for potential reclassification based on its market classification methodology and criteria.
According to Oman News Agency, FTSE Russell will continue to assess MSX's performance, ensuring it meets both quantitative and qualitative requirements. This process involves consulting international investment institutions about their experiences with the market. The FTSE Russell indices are highly regarded within the global investment community, serving as benchmarks for asset managers and investors worldwide.
The classification process by FTSE Russell involves a comprehensive evaluation, not just of index performance or trading levels, but also the regulatory environment, market infrastructure efficiency, and ease of access for international investors. The availability of information, market transparency, and the size of the investable market are also considered.
The watchlist inclusion will attract more attention from the international investment community, with asset managers and institutions monitoring market developments and access requirements in anticipation of potential reclassification.
Mohammed Mahfoudh Al Ardhi, Chairman of the Muscat Stock Exchange, emphasized that this development reflects the regulatory progress in recent years, which has improved market efficiency and international visibility. He highlighted that the transformation of MSX into a company owned by Oman Investment Authority is part of a larger strategy to develop a competitive capital market in Oman.
Haitham Salim Al Salmi, CEO of MSX, remarked that the watchlist entry positions the exchange at an advanced stage, shifting focus from readiness building to sustaining and consolidating progress. This step is expected to broaden the visibility of the Omani capital market, requiring continued efforts to enhance market efficiency and capacity for investment.
The move also opens up opportunities to increase Oman's presence on the global investment map, potentially attracting new institutional investments and supporting market depth and liquidity. Under the oversight of Oman Investment Authority and in cooperation with various financial entities, MSX is working to develop the capital market system, improve investor experiences, and facilitate access for investment institutions.
These efforts are aligned with MSX's objectives to elevate the Omani capital market's regional and international standing, expand the investor base, and enhance the appeal of listed companies to institutional investors, thereby supporting economic growth and diversification in Oman.
