Oman Financial Services Authority significantly expanded its collective investment framework with the introduction of 11 distinct categories of investment funds. The framework falls under the newly issued Executive Regulations of the Securities Law introduced to deepen the Sultanate’s capital markets.
Regulations Grant Oman Financial Services Authority Licencing Powers
The new regulations empower Oman Financial Services Authority to licence and supervise a diverse range of collective investment funds. Accordingly, this will create a legal foundation for new investment products while strengthening investor protection, governance and market transparency. Under the regulations, collective investment funds may now be established as securities, mutual investment funds and real estate investment funds. Additional funds include money market funds, debt instruments funds, holding funds, exchange-traded funds (ETFs) and venture capital funds. More options include private equity funds, endowment funds, green funds and sustainable-purpose funds. Oman Financial Services Authority will retain the right to approve additional fund types as market needs evolve.
New Rules To Cover Requirements For Full Investment Fund Ecosystem
The regulations establish licensing and prudential requirements for the full investment fund ecosystem, including fund managers, investment managers/advisers, custodians, trustees, administrators and distributors.
Securities mutual investment funds will continue to provide retail and institutional investors with professionally managed diversified portfolios of listed securities. Money market funds will offer low-risk, highly liquid investment options for cash management, benefiting both corporate and institutional investors. Real estate investment funds are expected to channel long-term capital into property development and income-generating real estate assets. Debt instrument funds will expand investment opportunities in government/corporate bonds, sukuk and other fixed-income securities, deepening domestic debt capital market. Holding funds will enable strategic investments in corporate assets and subsidiaries, supporting business consolidation and long-term ownership structures. Exchange-traded funds introduce globally popular, low-cost traded investment options which improve market liquidity while offering investors exposure to diversified positions.
Among the most significant additions are venture capital/private equity funds, which establish a regulatory platform for mobilising institutional capital. Their introduction supports Oman Vision 2040 objectives of fostering entrepreneurship, innovation and economic diversification.
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