In Oman’s capital market, transparency is more than a guiding principle, it is a legal obligation. Public joint stock companies are required to disclose key information that enables investors to make informed decisions and supports the integrity of the market. These disclosure requirements are part of a broader regulatory framework designed to ensure fairness, consistency, and investor protection across the stock exchange. This blog post will explain what disclosures are, the important role they play in the market, and an overview on the legal framework governing disclosures.
What Are Market Disclosures and Why Are They Important?
Market disclosures refer to the information that listed companies are required to publish to the public, investors, and regulatory authorities. These disclosures cover a broad spectrum of data, including financial statements, material events, corporate governance practices, and increasingly, environmental, social, and governance (ESG) information. The aim is to ensure that stakeholders receive timely and reliable updates that may influence the valuation or trading of the shares of a publicly listed company.
The Financial Services Authority (FSA) and the Muscat Stock Exchange (MSX) jointly oversee these obligations, issuing various decisions and circulars to guide the process. Disclosures are not limited to periodic financial results but also include information that could significantly impact market perception, such as dividend policies, board resolutions, and clarifications on market rumours or unusual trading activity.
The importance and purpose of market disclosures extends beyond simple regulatory compliance. By providing investors with consistent, accurate, and timely information, disclosures help identify and address information asymmetries, which can otherwise lead to unfair trading advantages or price manipulation. This transparency enables informed decision-making, promotes equal access to information, and helps maintain market integrity and investor confidence. The regulatory framework also provides enforcement mechanisms to ensure that non-compliance results in appropriate penalties, thereby reinforcing the significance of continuous and accurate reporting.
Legal Framework Governing Disclosures
The legal framework governing disclosures in Oman is comprehensive and draws on several primary and secondary sources of legislation. The Securities Law of 2022 governs a variety of securities including stocks. Articles 32 and 34 of this law prohibit trading of all securities based on undisclosed insider information and mandates the disclosure of material information required by law, which imposes duties of transparency and fairness, and requires regulated entities to disclose material facts that could influence trading decisions.
It is worth noting that article II of the Royal Decree 46/2022 Issuing the Securities Law mandated that an executive regulation for this law must be issued by June 2023, however, the FSA has not issued the regulation yet and accordingly, we have to refer to the executive regulation of the old Capital Market Law issued by the former Capital Market Authority (now the FSA) to implement the legal requirements set by the Securities Law. Part seven of this executive regulation details the methods, timing, and scope of material disclosures, including quarterly and annual financial results. Complementing this, the CMA Circular CMA/236/2014 outlines practical expectations, such as the requirement to publish financial news at least thirty minutes before trading sessions and to disclose audited financials within five days of board approval.
The Public Joint Stock Companies Regulation also defines the meaning of material information and specifies detailed procedures and timelines for publication of financial statements and disclosures. These provisions ensure that all disclosures are made in a structured and timely manner, with accountability placed firmly on the company’s board of directors.
In parallel, MSX Decision 77/2025 mandates public joint stock companies to disclose ESG practices through both the MSX platform and their own websites. These disclosures must be made within 30 days of the end of the financial year, or 45 days for companies with subsidiaries, and must present a balanced view that includes both positive achievements and material challenges.
Conclusion
Market disclosures are a cornerstone of Oman’s capital market integrity. By mandating consistent, comprehensive, and timely communication from listed companies, the regulatory framework ensures that investors are well-informed and that the market operates on principles of fairness and accountability. The FSA might issue the new regulation of the Securities Law at any time, therefore, it is important to stay up to date with new developments in this area.
You can search for the last MSX disclosures and track the disclosures of specific companies on Decree Risk on the link below:
