Selected Issues Papers

Fostering Capital Markets and Institutional Investor Development in Oman: Oman

By Thomas Pointek

April 15, 2025

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Format: Chicago

Thomas Pointek. "Fostering Capital Markets and Institutional Investor Development in Oman: Oman", Selected Issues Papers 2025, 033 (2025), accessed April 22, 2025, https://doi.org/10.5089/9798229007917.018

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Summary

Despite recent government-led initiatives to improve investor access and encourage participation by local businesses, capital markets in Oman remain relatively small and illiquid and the investor base remains dominated by domestic banks and pension funds. This paper reviews the experiences of other emerging markets in developing local capital markets, and describes the challenges faced in the development of such markets. The review shows establishing a functioning money and local currency bond market remains a critical first step in successful capital markets' development, while several policy tools beyond tax incentives can be employed to support participation in local markets. Increasing the presence of life insurance companies and reducing information asymmetries would help spur demand from a broader set of institutional investors.

Subject: Capital markets, Emerging and frontier financial markets, Expenditure, Financial institutions, Financial markets, Financial sector development, Government securities, Initial public offering, Insurance, Pension spending, Securities markets, Stock markets, Tax incentives, Taxes

Keywords: Bond market, Capital markets, Capital markets, Emerging and frontier financial markets, Equity market, Financial market development, Financial sector development, Government securities, Initial public offering, Insurance, Insurance companies, Insurance companies, Islamic finance, Money market, Mutual fund, Mutual funds, Oman, Pension fund, Pension spending, Securities markets, Stock markets, Tax incentives

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