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Study highlights MSX's tangible impact on economic development

Study highlights MSX's tangible impact on economic development

Observer4 days ago
An academic study confirms a positive correlation between the Muscat Stock Exchange (MSX) and its growing role in financing investments, in line with global trends positioning stock exchanges as effective financial instruments in modern economies.
The study took the MSX as a practical case. Titled 'The Role of Muscat Stock Exchange Management in Financing Investments in Line with Oman Vision 2040,' the research is considered the first of its kind in the Sultanate of Oman to explore the capital market's contribution to investment financing. It aims to elevate the status of the MSX as a reliable liquidity provider and stimulate its use in financing major national economic projects.
The study comes at a time when regional financial markets are striving to deepen their ecosystems, diversify financial instruments, and strengthen their roles amid a favourable investment environment in the GCC. These efforts are supported by economic reforms aligned with national strategies.
The study seeks to assess the MSX's role in financing investments within the framework of Oman Vision 2040, highlighting key programmes that support its mission as a capital market financing tool and a generator of investment opportunities. It also examines the development trajectory of the exchange in recent years. Findings revealed a strong, direct, and positive linear relationship between the MSX's performance and the level of investment financing in the Sultanate, especially through mechanisms such as equity offerings (IPOs) and bond issuances. As the MSX's role expands, investment financing also increases—aligning with Oman Vision 2040's goals.
The research also reviewed the foundational objectives behind the creation of global stock exchanges, particularly their function in mobilising capital for economic and developmental projects. It further emphasised the role of stock markets in channelling public savings into productive investment.
The study concluded with several recommendations, most notably the importance of implementing national initiatives that enhance the MSX's competitiveness as a viable financing option. It also called for improved coordination among regulatory and operational bodies within the financial sector to diversify financing instruments and continuously improve the investment environment.
Notably, the study opens the door for further specialised research in economic development and investment financing, especially efforts aimed at strengthening capital markets, advancing financial inclusion and fintech solutions, developing innovative financial products, and raising public awareness about investment opportunities—particularly those offered through initial public offerings.
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