Omani banks engaged in securities activities alongside their commercial banking operations have up to three years to restructure those activities into legally independent entities, under new capital market regulations that took effect on July 27. The requirement is outlined in the Executive Regulation of the Securities Law, issued under the Financial Services Authority (FSA) Decision No E/11/2026, which replaces the previous executive rules from 2009 and provides detailed implementation guidelines for the Securities Law enacted through Royal Decree No 46/2022.
Under the new framework, commercial banks must separate most securities-related activities into distinct legal entities, although custody, trust services, and underwriting are exempt from this requirement. The regulation aims to mitigate conflicts of interest and contain the transmission of risk between conventional banking and investment activities. The FSA also highlighted that the regulation formalizes investment banking as a regulated sector and establishes more comprehensive requirements concerning governance, capital, regulatory reporting, and compliance for capital-market institutions.
Several leading Omani banks currently licensed for securities activities under the FSA include the National Bank of Oman, BankDhofar, Sohar International, and Bank Muscat. These institutions offer a wide range of services covered by the new rules, including portfolio and fund management, investment advice, issue management, and corporate finance. The three-year compliance window grants these banks a longer transition period compared to other market entities to align their structures with the updated regulatory standards.
The development of Oman’s capital market has accelerated in recent years, supported by government initiatives such as listings linked to the Oman Investment Authority, enhanced market-making, liquidity programs, and incentives to encourage private and family-owned companies to access capital markets. Market capitalisation on the Muscat Securities Market (MSX) increased to approximately 39.41 billion Omani riyals as of September 24, 2026, up from 32.15 billion at the end of 2025. The MSX 30 Index also rose significantly during this period.
Financing raised through Oman's capital market exceeded seven billion riyals from 2021 to 2025, although the FSA has not publicly detailed the breakdown between government and private-sector issuance or among different financial instruments. The regulation defines an investment bank’s activities as encompassing investment management, securities portfolio management, issue management, product structuring, and advisory services related to listed securities. These institutions serve as intermediaries connecting businesses seeking financing with local and international investors.
Outside the commercial banking sector, specialized firms such as Oman Investment Bank, registered with the FSA in November 2023, operate within the securities sector offering brokerage, asset management, and investment services. The revised regime also expands the categorization of investment funds to include eleven types, such as mutual funds, venture capital, real estate, and green funds, reflecting growing market sophistication. Investment and real-estate funds held approximately 1.2 billion riyals in assets in 2025, nearly doubling the prior-year total.
Entities other than banks affected by the regulation were required to comply within six months of its enactment, setting a deadline of January 27, 2027. Securities firms face an imminent compliance deadline, while banks will use the extended three-year period to complete their operational and structural adjustments. The FSA noted that about 37 percent of the provisions within the regulation are new or amended, reflecting a significant evolution in Oman’s capital market regulatory environment.