The launch of the Alternative Investment Market (AIM) regulation is set to make green financing more accessible to small and medium enterprises (SMEs) in Oman. The new market, established by the Financial Services Authority (FSA), will operate as a secondary market within the Muscat Stock Exchange (MSX) under a simplified regulatory framework.
Key Highlights
The new market is a strategic move to unlock new capital for growing businesses:
- New Secondary Market: The launch of the Alternative Investment Market (AIM) on the Muscat Stock Exchange.
- Target Companies: The market is designed for SMEs, startups, and family-owned businesses.
- Green Finance Focus: The AIM is a core part of the FSA’s national roadmap to harmonize the financial sector with principles of green and sustainable finance.
- Simplified Framework: The regulation features lower entry barriers and tailored listing conditions to support growth and innovation.
A Hub for Green and Sustainable Finance
The AIM regulation is a key part of the FSA’s 36-month plan to integrate global best practices with Omani frameworks, ensuring a structured transition towards green finance. This supports Oman’s national commitment to achieving net-zero emissions by 2050. By embedding transparency and governance requirements, the AIM is poised to become a hub for enterprises in renewable energy, circular economy initiatives, and eco-friendly technologies.
Unlocking Capital for High-Growth Sectors
At its core, the AIM aims to unlock financing for SMEs that may struggle to secure funding through traditional banking channels. The flexibility is particularly important for entrepreneurs in sectors central to Oman’s green and digital transition, such as clean energy, logistics, and advanced manufacturing, where access to growth capital is critical. To enhance investor trust, the regulation also requires companies to adopt the International Financial Reporting Standards for SMEs (IFRS for SMEs).
Promoting Innovation and Digital Integration
Beyond finance, the AIM is designed to promote innovation. Its structure facilitates integration with fintech platforms, crowdfunding solutions, and digital investment tools, which will improve connections between investors and entrepreneurs. This opens the door to greater participation by venture capital funds, angel investors, and high-net-worth individuals seeking opportunities in emerging industries.
Source: Muscat Daily
