Oman: Selected Issues
IMF Staff Country Reports, January 22, 2025
Source details
- Canonical URL
- Oman: Selected Issues
Other formats
Bibliographic details
- Published: January 22, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400298752.002
Overview
- This Selected Issues paper reviews the experiences of other emerging markets in developing local capital markets, and describes the challenges faced in the development of such markets.
- Efforts are ongoing to develop the local currency bond market, supported by IMF technical assistance.
- Initiatives are underway to enhance access to the domestic equity market and increase its depth and liquidity.
- Still underdeveloped debt markets and systemic excess liquidity have driven a hold-to-maturity culture among investors, as several of the preconditions for liquid secondary markets are not met.
Key findings on capital markets development
- Improving the government debt issuance strategy would enhance overall transparency and help increase secondary market liquidity.
- Establishing a functioning money and local currency bond market remains a critical first step in successful capital markets' development.
- Several policy tools beyond tax incentives can be employed to support participation in local markets.
- Increasing the presence of life insurance companies and reducing information asymmetries would help spur demand from a broader set of institutional investors.
Policy recommendations and initiatives
- Continue IMF technical assistance to develop the local currency bond market.
- Enhance access to the domestic equity market to increase depth and liquidity.
- Reform government debt issuance strategy to improve transparency and foster secondary market activity.
- Deploy policy tools (in addition to tax incentives) to encourage participation in local markets.
- Promote the growth of life insurance companies and reduce information asymmetries to broaden institutional investor demand.
Subject areas and keywords
- Subject: Capital markets, Digitalization, Financial markets, Securities markets, Stock markets, Technology
- Keywords: Capital markets, capital markets incentives program, Caribbean, development in Oman, Digitalization, employment growth, Global, private sector employment, Securities markets, SME growth, South Asia, Stock markets
Content in this bundle
- Oman: Selected Issues; IMF Country Report No. 25/14; December 17, 2024