5. Oman's Economy Improved significantly since 1999 due to rising oil prices Moved ahead with privatisation of utilities Development of a body of commercial law to facilitate foreign investment Implementation of policies to reduce dependence on oil and expatriate labour Large amount of liquidity has led to development of mega projects like Industrial estates in Sohar
6. Muscat Securities Market Established by the Royal Decree issued on 21 June 1988 Main purpose: - Regulate and control Omani securities market - Participate effectively for setting up Sultanate’s financial sector One of the highest regulated markets in the region Listed companies are required to publish quarterly financial results in accordance with International Accounting Standards
7. Muscat Securities Market Capital Market Authority (CMA), the regulatory body for MSM MSM is a govt. entity, financially and administratively independent from CMA but subject to its regulation Introduced new mechanisms to encourage stable dealings in securities and attract foreign investments
10. Rules for Listing The paid-up capital shall not be less than RO 2 million Company must have achieved a Net Profit during the last two years No. of days the company’s shares are traded should not be less than 30 and share turnover should not be less than 5% per annum
16. Merits Creating a market for the company's shares Enhancing the status and financial standing of the company Increasing public awareness and public interest in the company and its products Providing the company with an opportunity to implement share option schemes for their employees
17. Merits (Cont..) Accessing to additional fund raising in the future by means of new issues of shares or other securities Facilitating acquisition opportunities by use of the company's shares Offering existing shareholders a ready means of realizing their investments
18. Demerits Increasing accountability to public shareholders Increasing costs in complying with higher level of reporting requirements Becoming more vulnerable to an unwelcome takeover Need to observe and adhere strictly to the rules and regulations by governing bodies
19. Demerits (Cont...) Relinquishing some control of the company following the public offering Suffering a loss of privacy as a result of media interest
20.
21. Number of companies in each sector:Banks & Investment : 10 Industry : 10 Service & Insurance : 10
22. Foreign Ownership Principal investment is in Oil sector Investments encouraged in areas like industry, agriculture and fishing through an initial 5-year tax exemption (subject to renewal) Foreign investments at MSM accounts for 30% in 2008 as compared to 16% in 2005
23. Foreign Ownership (Cont…) Foreign (non-GCC and non-arab) shareholding at MSM increased from 6.7% in 2005 to 12% in 2007 Off late Raysut cement, Oman cables, Omantel and Bank Muscat have attracted foreign portfolio investments
24. 3 Companies Muscat Securities Market Oman United Insurance Company Oman Oil Marketing Company Bank Muscat
25. BankMuscat The biggest financial service provider in Corporate Banking, Retail Banking, Investment Banking, Treasury, Private Banking and Asset Management 119 branches and about 320 ATMs and 91 CDMs Awarded “Best Bank in Oman” & “Gulf Excellence Award”
26. BankMuscat First Bank to receive ISO certification in the middle east region Plays a key role in development of investment banking & treasury
27. Financials Asset worth over USD 15 Billion Major & Strategic stakes: 49% of share in BMI Bank in Bahrain 35% in Saudi Pak Commercial Bank 2.67% in HDFC Bank in India Dominant leadership position with an 87% share of the asset under management The dividend payout ratio has increased from 10%-15%
30. Dividend Details 2008-09: Cash dividend aggregating to RO 21.5 million. (Rightist’s view) 2007: Cash dividend aggregating to RO 29.1 million. 2006: Cash dividend aggregating to RO 26.5 million. 2005: Cash Dividend aggregating to RO 14.9 million. (Leftist’s view) 2004: Cash Dividend aggregating to RO 12.8 million. (Leftist’s view) 2003: Cash Dividend aggregating to RO 7.3 million. (Leftist’s view)
31. OUIC, SAOG Established in 1985 to cater the future needs of general public and industrial, business and health medical sectors In 1999 it created auto repair division mainly to maximize OUIC’s motor insurance business Holds a market share of 14.5%
32. OUIC, SAOG Despite competition OUIC has achieved 25% growth in premium income Suffered huge losses in 2007 due to the claims after unusual weather conditions
35. OOMC, SAOG Established in 1959, now have over 100 employees 24% of retail market share with filling stations 50% owners of oil storage & distribution terminal, functioning in joint venture (JV) with Al- Maha supplying premier motor spirit, regular motor spirit, gas oil, jet A-1 and kerosene
36. OOMC, SAOG Omanoil caters to different segments of lubricant market: Highstreet Commercial & Industrial Rigs & Crushes Franchise Workshops Quick Lube - Lube Plus
37. Financials Retail business registered the biggest growth of 40% The performance of commercial and lubricant business has contributed to 15% and 23% increase in volume of sales Increase in profit after tax to RO 1.61 million Total sales volume has increased by 22%