Bank Muscat has successfully managed the initial public offering (IPO) of the Oman India Fertiliser Company (OMIFCO), marking the largest public offering on the Muscat Stock Exchange in 2026. The IPO, which involved the sale of 1.672 billion shares representing 25% of OMIFCO’s total share capital, raised approximately RO 260.9 million ($678 million). This transaction stands out as the only significant IPO in the Gulf Cooperation Council (GCC) region this year and attracted strong demand from both regional and international institutional and retail investors.

The subscription period, from June 16 to 25, 2026, saw total subscriptions reaching 18 times the shares offered, with an aggregate of around RO 4.7 billion ($12.2 billion). The institutional tranche alone was oversubscribed by 27.4 times. Priced at the top of the marketed range, OMIFCO’s shares surged more than 20% on their first day of trading, underscoring strong investor confidence in the offering. The successful IPO has reinforced trust in Oman’s capital markets and is expected to encourage future divestment initiatives from the Oman Investment Authority.

Bank Muscat played a central role throughout the IPO process as the sole Issue Manager and Joint Global Coordinator in partnership with another international bank, and also acted as a collecting bank alongside Meethaq Islamic Banking. Its involvement spanned transaction structuring, stakeholder engagement, regulatory coordination, issuance pricing, subscription management, and settlement processes.

Collaboration with OMIFCO’s key shareholders, including OQ SAOC, IFFCO, and KRIBHCO, facilitated the development of a compelling equity narrative centered on OMIFCO’s status as the largest fertilizer complex in Oman and one of the top five in the GCC. The company’s longstanding offtake agreements and strategic position amid evolving global food security needs boosted its investment appeal. Bank Muscat also led the establishment of a dividend policy designed to balance robust business fundamentals with attractive returns for investors. The IPO was structured to be Shari’a-compliant, meeting stringent regulatory and professional standards, thereby appealing to a broad investor base.

Meanwhile, in the agricultural sector, authorities in Oman are considering new measures to ensure sustainable water use in the expansion of farming activities in the Najd region of Dhofar. The Ministry of Agriculture, Fisheries and Water Resources, represented by Dr. Khalid bin Salim al Mashaikhi, has proposed an annual water budget system that would tie agricultural and investment licenses to specific water allocations based on detailed hydrogeological assessments.

This approach aims to curb over-extraction from the Najd basin’s Umm Al Radhuma aquifer system, which currently experiences depletion exceeding natural recharge. Instead of relying solely on land availability to regulate agricultural growth, the new framework would prioritize water availability as the fundamental limit, integrating water measurement through meters and a unified agricultural-water database.

Najd’s underground water resources are complex, with recharge rates influenced by rare tropical cyclones and limited contributions from the Khareef season. The area spans several administrative districts and relies heavily on groundwater extracted from multiple aquifer layers that have long natural renewal cycles, sometimes spanning tens of thousands of years.

The ministry has identified critical gaps in managing water use, including aligning crop types and production volumes with market demands and food security goals, as well as introducing treated wastewater to reduce groundwater dependency. Additionally, infrastructure such as recharge dams is proposed to enhance natural replenishment from southern catchments.

Oversight of these efforts is entrusted to the Najd Agricultural Area Development Office, which coordinates agricultural and water management strategies, maintains an integrated investment map, and engages agricultural associations in crop planning. The ongoing shift to managing agriculture through a water-centric lens reflects an effort to secure the region’s long-term agricultural productivity without compromising vital groundwater resources.