Listed companies in Oman contribute 17 per cent of GDP

28/09/2014 00:46 AST

Listed companies on the Muscat Securities Market (MSM) contribute 17 per cent of the gross domestic product (GDP), which is an excellent growth in comparison to other markets.

The companies started growing in the last eight years at a fast pace, and the gross returns of the listed companies was OMR5.14 billion in 2013, while it was OMR1.63 billion in 2005, said Abdullah bin Salim Al Salmi, executive president of the Capital Market Authority (CMA).

Al Salmi said that listed companies managed to distribute OMR2 billion to the investors in 2013.

He added that Omani capital market managed in 2013 to collect OMR1.2 billion and directed them to the private sector, which emphasised the natural position of the market.

He added that the insurance sector managed to provide insurance cover against multiple risks to 1,200,000 individuals and institutions, and paid OMR216, 8 million for claims in 2013.

The volume of the finance provided by the market to commercial companies was OMR1.17 billion in 2013 while the total amount of loans provided by the banks to the commercial companies was OMR0.57 billion.

Al Salmi added that insurance sector in the Sultanate grew faster than all other Gulf Cooperation Council (GCC countries), except Saudi Arabia, as the annual growth of the insurance sector in the sultanate in 2007 to 2013 was 14 per cent.

This was the highest in the Gulf insurance markets, except for the Saudi market which recorded 18 per cent growth rate in the same period.

The CMA executive chairman asserted that the government is interested in health insurance in general and there are studies being conducted in this regard with emphasis on the government providing health care to all citizens.

Regarding the regulatory and supervising effort provided by CMA to the entities subject to its control, Al Salmi said that indicators show that 2012 was the busiest as listed companies, insurance companies and companies operating in securities were audited to ensure their commitment to the laws regulating their operations and to disclose the regular data and essential information.

He added that those efforts bore fruits as there were 254 cases of investigation, reconciliation and penalties on a number of violating companies in capital markets and insurance sectors, while 1010 complaints were examined, mostly on vehicle insurance.

Times of Oman