Marketing Units of Investment Funds in Oman

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Analysis

As state economies around the world enter into a period of recovery, investments in securities has yet again started to see a boost, and is particularly visible in Oman.

The country is a stable and attractive market in which to offer securities due to its steady GDP growth rate of 5% over past years and an estimated USD 29,600 GDP per capita.

As units of investment funds are considered ‘securities' under Omani law, in this article we take you through the general issues to be aware of when contemplating marketing units of investment funds to potential investors in Oman.

LEGAL FRAMEWORK

In general, the marketing of units in Oman is governed by: 

  1. Royal Decree No. 80/98 of 9 November 1998 promulgating the Capital Market Law (‘Market Law'); and

  2. The Capital Market Law Implementing Regulation issued by the Capital Market authority under decision number 1/2009 (‘Market Regulations').

MARKETING REGULATORY REQUIREMENTS:

The following requirements need to be adhered to before units can be sold to and acquired by Omanis and non-Omani nationals: