A New Era for Emerging Businesses – Oman’s Rising Companies Market

The Sultanate of Oman has taken another significant step toward expanding its capital markets and supporting the growth of innovative enterprises with the issuance of Decision 28/2025: The Regulation Governing the Rising Companies Market. This regulation, issued by the Financial Services Authority (FSA) and published in August 2025, implements Royal Decree 18/2025, which formally established the Rising Companies Market (RCM) as a new sub-market within the Muscat Stock Exchange (MSX).

The Rising Companies Market represents a forward-looking platform designed to provide promising Omani enterprises with easier access to capital markets while offering investors an opportunity to participate in the country’s new growth stories.

Defining the Rising Companies Market
Under the regulation, a rising company is defined as a closed joint stock company (S.A.O.C) listed on the Rising Companies Market being a sub-market in the Muscat Stock Exchange. This distinguishes it from traditional public joint stock companies while still subjecting it to disclosure, governance, and compliance obligations.

The RCM is open to qualified investors only, including institutional players such as investment funds, insurance companies, the Social Protection Fund, as well as high-net-worth individuals and those with demonstrated investment knowledge and financial solvency. This controlled access is designed to protect retail investors from the risks associated with investing in early-stage or high-growth ventures while encouraging the growth of certain types of companies with potentials.

Listing Methods and Requirements
The regulation provides two routes for companies to list:

1.Direct Listing : for companies with a proven track record, requiring:

• Net profits for the past three financial years.
• An average revenue growth of at least 14.4% annually over three years.
• At least 20 shareholders.

2.Indirect Listing : for companies raising capital through private placement, requiring:

• A minimum of two years operational history.
• Allocation of at least 20% of capital to qualified investors or a capital increase of no less than 20%.
• A valuation of at least OMR 500,000.

Applications are processed swiftly, with the FSA required to issue a decision within three (3) working days of complete submission, reflecting a significant efficiency improvement compared to traditional market approvals.

Trading and Investor Protections
Trading on the Rising Companies Market is restricted to qualified investors, ensuring that participants understand the risks and have the financial capacity to bear them.
Companies listed must comply with IFRS-SME accounting standards and are required to disclose:
a. Semi-annual unaudited financial statements within 30 days.
b.Annual audited statements within 90 days.
On the other hand, Restrictions are also imposed on founders, whereby they cannot sell their shares for one year following listing, helping stabilize the market and build investor confidence.

Incentives for Rising Companies
To attract listings and encourage transformation, the MSX and FSA have launched an Incentives Program for the Capital Market, consisting of three tracks. Track 2, focused on the Rising Companies Market, offers a suite of benefits including:

1.Exemption from issuance and prospectus fees for three years.
2.Installment payment of income tax and exemption from additional tax.
3.Refund of two-thirds of corporate income tax for five years after listing.
4.Exemption from transfer agent fees for three years.
5.Preferential pricing of 10% in public procurement and tendering contracts.

Such incentives not only reduce the cost of entry into the market but also enhance cash flow for newly listed companies, making the RCM a competitive and attractive platform.

Economic and Market Impact
The RCM is set to open new financing avenues for SMEs and growth companies, while also offering family businesses a pathway to diversify ownership, strengthen governance, and ensure continuity across generations. By adding depth to the Muscat Stock Exchange, the market will support economic diversification under Vision 2040 and boost investor confidence through greater transparency. Over time, it can also serve as a launchpad for companies to graduate to the main market, enriching Oman’s capital market ecosystem.

Over the medium term, the RCM could serve as a launchpad for companies to graduate to the main market, creating a dynamic pipeline of new public companies and further energizing Oman’s capital market ecosystem.

Conclusion
The establishment of the Rising Companies Market through Decision 28/2025 marks a milestone in Oman’s journey to build a more diversified, and resilient economy. By combining clear regulations with meaningful incentives, the initiative not only empowers emerging enterprises but also supports and enhances the role of capital markets in national development. For entrepreneurs, investors, and policymakers alike, the RCM represents not just a new market segment, but a new chapter in Oman’s economic story.