The Muscat Stock Exchange has entered a new phase of international evaluation by being included in the FTSE Russell Watchlist. This action indicates the possibility of upgrading Oman's stock market from frontier markets to secondary emerging markets and could help increase participation from global institutions and investment funds.
Details of FTSE Russell Evaluation
This decision was made as part of the annual market classification review, with results announced on October 6, 2026. The Muscat Stock Exchange will hold a press conference on October 11 to discuss the latest status of the classification and potential opportunities for Oman's financial market.
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FTSE Russell has stated that the Omani market meets the required quality criteria and also fulfills the minimum market capitalization and number of eligible securities requirements. These conditions have led to Oman being officially placed on the watchlist and considered for upgrade.
Potential Implications of Upgrade to Emerging Market
Hayten bin Salem Al-Salmi, CEO of the Muscat Stock Exchange, has officially stated that Oman's inclusion in the FTSE Russell Watchlist is a significant advancement in strengthening the presence of Oman's financial market to international investors. He also noted that the potential upgrade to emerging market classification could expand the range of institutions and investment funds capable of investing in the Muscat Stock Exchange.
As some global institutions link their investment strategies to market indices and their classifications, the entry of a new market to a higher category could lead to increased investor attention towards it. The Muscat Stock Exchange is striving to improve its operational and regulatory environment, enhance liquidity and investment capability, and market access to meet the requirements of global institutions.
International institutions typically use various classifications to assist investors in assessing volume, liquidity, and ease of market access. Frontier market classifications include smaller or less liquid markets compared to emerging markets.
If the Muscat Stock Exchange transitions to the secondary emerging market classification, it could broaden the scope of international investors and funds considering investments in Omani stocks. This is because some funds are directly linked to global market indices, and other investment managers use them as references to determine geographical weights in their investment portfolios.
However, the volume of any future financial flows will depend on the final decision regarding the upgrade, the integration of eligible securities and their weights in indices, global market conditions, and investor decisions.
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