ANNUAL REPORT - Capital Market Authority, Sultanate of Oman

ANNUAL REPORT

2 Capital Market AuthorityANNUAL REPORT

3

His Majesty Sultan Qaboos bin Said


Contents

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Key facts from 2018

Chairman’s statement

Executive President’s statement

CMA: Establishment and regulated entities

Vision

Mission

Objectives

Strategic Priorities

Capital market performance in 2018

Primary market

Secondary market

Insurance market performance 2018

Regulatory framework

Training and qualification

Organizational Structure

Contact Details

Appendices


The capital market provided RO 1.8 billion funding to the various economic projects in the financial ,services and industrial sectors.

Overall volume of capital market sector was RO 18.18 billion increasing by 1.26% compared to 2017.

Net realized profits of public joint stock companies in 2018 were RO 820 million compared to RO 615 million in 2017 with a 33% annual growth.

Market value of the capital market sector was 34% of the GDP in 2018.

Omanization ratio in the companies operating in the field of securities 60%.

KEY FACTS 2018

Capital Market Sector

7Capital Market Authority ANNUAL REPORT

Insurance sector’s contribution to GDP 1.52% in 2018 compared to 1.63% in 2017.

3% growth in gross insurance premiums and RO 463.595 total underwritten premiums.

58.72% retention ratio of insurance companies in 2018

169 licenses granted by CMA to insurance companies and brokers

169 licenses granted by CMA to insurance companies and brokers

Branches of insurance companies were 195 in the various Governorates of Oman.

Investigation in 490 official complaints in addition to a number of non-formal complaints which were resolved over the telephone

Takaful ratio 12% of the gross direct premiums in 2018. Takaful premiums grew by 17%.

17% growth in the number of insurance policies issued in 2018

Insurance Sector Performance


HE Yahya Said Abdullah Al JabriChairman of the Board Directors

Statement of the Chairman


On account of the active role played by the capital markets in

supporting the plans and programmes of economic diversification

through inviting investment initiatives and improving the

performance and productivity of the issuers of securities

beside the importance of insurance services in furnishing safe

environment for individual and institutional enterprises and

activities, the Capital Market Authority continued the process to

upgrade the capital market and insurance sectors and to create

an environment attractive to investment that is fair, transparent

and integral to protect all stakeholders in the capital market and

insurance sectors. The year 2018 witnessed a number of decisions

and regulations with the object of enhancing the readiness of the

legislative and regulatory infrastructure to meet the needs of the

current era.

The capital market sector represents one of the key sources

of financing in the Sultanate as it funds a number of important

economic projects. In 2018 the sector provided financing at RO


1.8 billion which reflects the capital market’s ability to pooling the

savings and distributing them to the different investment sectors.

Key CMA’s efforts in 2018 were the issuance of new regulations in

the capital market and insurance sector the most important were

the amendment of the Executive Regulation of the Capital Market

Law, Auditors Accreditation Rules, Creation of Fund for Aid of

Injured Persons, Heirs of Deceased and Compensation for Damage

Incurred in Traffic Accidents and issuing its Articles.

CMA attached great attention to enhancing and boosting the

contribution of the insurance sector and manifestation of its

importance and relevance to the national economy directly or

indirectly through the volume of funds invested in the sector. Total

funds invested in the sector were RO 621 million. Direct gross

premiums were RO 463 approaching half billion Riyals which is

evidence of expansion and turnout on insurance products further

to high level of confidence in the sector.

I would like to commend the efforts exerted by CMA in preparing

the regulations and rules for the health insurance scheme for the

employees of the private sector and the expatriates “Dhamani”

which its implementation phases would be announced shortly by

the Council of Ministers. The scheme would contribute in enhancing


the growth of the insurance sector and indicates the emergence

of a new era of development thanks to the expected demand for

health insurance products and the accompanying expansion in the

private health care system.

In view of the positive prospects for the future of Omani health

insurance market, CMA attached great attention to the importance

of enhancing the economic value of the sector and continued

the national programme for empowerment of the national cadres

“Tamkeen” which aims at upgrading the skills of the employees

to achieve qualitative Omanization policy based on empowering

the Omani cadres working in the insurance sector by focusing on

increasing the ratio of Omani citizens in the senior, medium and

operational roles through furnishing training programs for the

purpose of upgrading the administrative and technical skills to gain

the skills and knowledge that qualify them to efficiently contribute

to improving the structure of the sector for its development and

growth.

Finally, I would to commend the role of the management and staff

of CMA for their efforts praying to Allah the Almighty to bestow on

this country peace and safety under the leadership of His Majesty

Sultan Qaboos Bin Said may Allah the Almighty protect him.


H.E. Abdullah bin Salim Al SalmiExecutive President

Executive President’sStatement


The Capital Market Authority’s vision is to create a capital market

that acts as sustainable powerhouse of comprehensive economic

growth and wealth creation. CMA believes that the capital markets

are important to the economy for being facilitating instruments of

capital movement processes between the various components of

the economy and investing them to achieve utmost contribution

in financing the projects, wealth maximization and participation in

the economic development. Hence, CMA was keen to cope with

the developments in legislation and regulation on the global arena

to upgrade the capital market and insurance sectorsو boost the

confidence of local and international investors, ensure continuity of the

development of the institutions operating in these sectors, diversify

their products and to involve the greatest number of participants to

achieve the greatest added economic value to the national economy.

Financial data indicates the role the capital market sector plays as a

source of financing in providing financing at RO 1.8 billion in 2018.

The size of such financing is evidence of the ability of the capital

market to pool the savings from the various sectors of the community

and directing them to financing the projects and distribution to the


different investment sectors. In the same period the total value of

the issued corporate bonds and Sukuk was RO 277.4 million.

The size of the capital market sector has increased by 1.26% to RO

18.18 billion compared to RO 17.95 in the previous year which is

the proceeds of the regular market, parallel market and follow up

market in addition to the bonds and Sukuk market which all together

represent 57% of the total volume of the capital market in Oman while

the closed joint stock companies registered in the capital market

represent 43% of the total volume of the capital market sector.

Although CMA adopts open doors policy in dealing with foreign

investments and encouraging the role of the capital markets as

entrance for foreign funds to contribute to the national economy

through providing liquidity in the local market and attracting more

capital, however, the year 2018 witnessed a decline in the holdings

of foreigners in the capital of the listed public joint stock companies

from 28.07% at the end of 2017 to 26.08% in 2018. Buying by non-

Omanis was RO 99 million at 12.95% and selling was RO 261 million at

34.16%. Non-Omani investment transactions have dropped by 21.21%

to RO 161.8 million.

The insurance sector witnessed rapid growth. The sector’s

contribution to the national economy in 2018 was 1.52%, growth rate

of gross insurance premiums was 11.36%, written premiums were RO

463.595, number of issued insurance policies grew by 17%, retention

ratio of insurance companies was 58.7% and Takaful’s share in the

total gross direct premiums of insurance companies was 12% a 17%

growth.


In the legislative field CMA issued a number of new regulations and

rules relating to the capital market and insurance sectors the key

were the amendment of the Executive Regulation of the Capital

Market Law, Auditors Accreditation Rules, Creation of Fund for

Aid of Injured Persons, Heirs of Deceased and Compensation for

Damage Incurred in Traffic Accidents and issuing its Articles.

CMA will continue its works to enhance the laws and regulation in

a manner commensurate with the realities of the market in order

to upgrade the standards of performance of the capital market and

insurance sector and to increase their contribution to the GDP of the

Sultanate, as well as endeavoring to bolster the levels of compliance,

transparency, integrity and fairness to provide greater protection to

investors in particular and the participants in general.

Finally, I would like to take this opportunity to extend my sincere

thanks and appreciation to the Board of Directors for their support

and to all my colleagues the employees of CMA for their efforts,

diligence and loyalty in enriching the work environment. I would also

like to extend the thanks to all our partners in the capital market

sector for their cooperation which had deep impact in attaining

the desired goals. Certainly, all will spare no effort to provide every

possible effort to the CMA’s endeavors to achieve the best to realize

the aspirations of the Government of His Majesty Sultan Qaboos Bin

Said may Allah the Almighty protect him.


Board of Directors

H.E. Yahya bin Said Al JabriChairman

H.E Sh. Dr. Abdul Malik bin Abdullah Al-Hinai

Vice Chairman


H.E. Abdullah bin Salim Al SalmiChief Executive Officer

Mr. Abdul Razak bin Ali IssaMember

Mrs. Farah bint Abdullah bin Musa Abdulrahman

Member

Mr. Malik bin Abdullah bin Said Al Mahrooqi

Member

Mr. Hamdan bin Said Al DurieMember

Mr. Ahmed bin Saleh Al-Marhoon

Member

Mr. Mubark bin Mohamed Al-Dohani

Member


Objectives

visiOn

cMA PrOfile

MissiOn

PriOrities Of strAtegy


cMA PrOfile

The Capital Market Authority was established by Royal Decree No. 80/98 on 9th November 1998. It is a government entity that enjoys juristic personality, financial and administrative independence and assumes the following functions and duties:

• SupervisingMuscatSecuritiesMarket

• SupervisingMuscatClearanceandDepositoryCompany.

• Licensing,supervisionandregulationof:

- Public joint stock companies

- Companies operating in securities.

- Insurance companies and brokers

- Credit rating companies.

• Developing the capital market and insurance sectors throughconducting studies and setting out laws and regulations in line with the best international practices.

• Enforcementofthelawsunderitsjurisdiction


1234

visiOn

“The Oman Financial Market will become an engine for sustainable economic growth and wealth creation.”

The vision of the CMA is for the Oman financial market to deliver diversified economic growth for Oman through: improved investment in, and performance and productivity of, issuers; the generation of efficient returns for savers, investors and users of financial market products; growth in market participation and inclusion. The goals of this vision are to:

Facilitate the Government’s drive to deliver sustained, diversified economic growth and to increase employment levels in the Sultanate.

Foster continuous development of the domestic financial market to ensure it is meeting the needs and improving the performance of investors and companies in the Sultanate, and beyond.

Protect investors and other participants by promoting fair, open, and efficient markets, and by ensuring full and timely disclosure of material information.

Maintain financial system stability, including through appropriate, transparent and predictable regulation, licensing, and supervision of market participants.


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Promote and expand informed participation in the capital and insurance markets, and other financial markets we may develop and regulate.

Regulate, monitor and supervise the issue and trading of securities and insurance, including full disclosure of material information regarding securities, insurance, and related transactions, to the public.

Achieve fairness, efficiency, and transparency in securities and insurance transactions.

Implement measures to reduce systemic risks related to securities and insurance.

Develop and improve the securities and Insurance markets, including transactions on and off the exchange.

License, regulate, monitor, and supervise the activities of entities subject to its control and supervision.

Develop and improve organizations and entities trading in securities and offering insurance.

Protect the public and investors from unfair and unsound practices.

Monitor and investigate conduct that may constitute a breach of CMA rules and regulations, and conduct enquiries into any matter relating to the financial markets and activities of participants.

Enforce rules and regulations, and sanction breaches.

Conduct all our actions and exercise our powers fairly, consistently, and proportionately.

MissiOn

“Developing and promoting informed, efficient and effective markets & participation”.

The goals of this mission are to:


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ObjectivesOur actions and measures lead to fair, high quality, growing and sustainable markets As a result of the work we do, we aim to have the following impacts on financial markets:

Investors understand, and have confidence and trust, in the regulation and functioning of the financial markets, and have confidence in financial advisors

Financial markets are efficient, fair, and clean.

Financial markets are resilient, attractive, growing, and offer a range of quality and beneficial products and services.

Investors have access to understandable information they need to make informed decisions.

Financial markets participants have clear and well-understood responsibilities, and act responsibly and properly towards all counter-parties.

The costs and benefits of the regulatory regime are proportionate

Risks to the CML and CMA›s objective are identified, and suitable responses implemented.

Financial markets are growing faster than GDP.

Financial markets are contributing economic value to the Sultanate.


the cMA’s strAtegic PriOrities:

Continuous efforts to exploit feasible opportunities and

invest in them.

Preparation for the introduction of

more attractive and high quality market

products.

Expansion of the insurance sector and work to distribute

insurance products broadly.Awareness of investors about their responsibilities and duties towards investing in the capital market.

Provision of best ways for investors to access the information they require.

Building and enhancing investors’ trust in the market and financial intermediaries.

Improvement of the capabilities of CMA’s units, staff, equipment and systems, and simplification of procedures and processes.

cMA hAsseven

strAtegic PriOrities


cma.om cmaomancmaoman

www.cma.gov.om

[email protected]

CAPITAL MARKET AUTHORITYP.O. Box: 3359, PC:112, RuwiSultanate of OmanTel.: +968 24823100


Capital MarketPerformancePrimary Market


The capital market sector biggest source of funding economic undertakings in Oman

Capital market provided funding at RO 1.8 billion in 2018

The capital market plays a vital role as the most important source of funding in Oman since its inception. In 2018 it provided funding at RO 1.8 billion. The huge values of funding is proof of the capital market’s ability to pooling and distributing the savings to the various investments sectors regardless of the cautious state in the market last year. The adopted policies were encouraging taking into account the Government’s desire to continue the vital projects, economic diversification, privatization, improving the business environment and enhancing its competitiveness to boost confidence to mitigate the cautiousness as well as maintaining the standards of basic services in the top priority areas of the Government which are positive indicators for the coming period which would positively reflect on the performance of the capital market.

Figure (1) shows the funding provided by the capital market to the economy during the period 2012-2018

2012

2013

2014

2015

2016

2017

2018

994

1,168

907

2,565

1,595

1,927

1,793


Capital Market’s contribution to the national economyThe capital market sector is deemed one the key components of comprehensive economic development in all the countries due to the pivotal role in channeling the savings toward many investment and development projects. It is one the fastest developing sectors as regards the laws, regulations and mechanisms on the international and regional arenas. The Omani capita market provides investment opportunities for the surplus liquidity, savings of individual and unused funds of the companies as well as availing opportunities to the Omani investor to benefit from the gains of development through holding shares in national companies and impacting their resolutions and sharing in profits.

Capital market’s efficiency stimulates foreign investment and enhances confidence in the national economy. The market value reflects the size of the capital market sector through calculating its contribution to the GDP. The results according to 2018 closings suggest the size of the capital market was RO18.8 billion increasing by 1.26% compared to the previous year which was RO 17.95 billion.

The sector still plays remarkable role in its contribution to the national economy as it represents 34% of the Sultanate’s GDP.

Table (1): The capital market in the Sultanate provided funding at RO 1.8 billion to the companies in 2018 through various types of funding such as shares, bonds and Sukuk

Number Per TypeCapital-Million (OMR)Index

1376.67Bonus Shares(SAOG)

00.00Bonus Shares(SAOC)

464.93Right Issues (SAOG)

15163.67Right Issues (SAOC)

00.00Private Placement(SAOG)

9417.08Private Placement (SAOC)

514.00Capital Foralization(SAOG)

1212.24Capital Formalization(SAOC)

269.63New Issue(SAOG)

1551.25New Listed (SAOC)

13777.37New Issues Bonds & Sukuk

771,846.85Toltal Funds Raised

212.00Capital Reduction (SAOG)

341.54Capital Reduction(SAOC)

01,793.3Net Capital Raised


The size of the Sultanate’s market at RO 18.8 billion is a result of the regular, parallel and follow up markets where shares of public joint stock companies are listed in each market in accordance with specific rules as well as the bonds and Sukuk market. They all represent 57% of the overall market while the closed joint stock companies represent 43% of the market size

Figure ( 2 ): Progress of the market value during the period 2011-2018 (RO Billion)

18.1817.9517.2915.7814.5614.1611.6610.34

2018

2017

2016

2015

2014

2013

2012

2011

Figure ( 3 ): Market Capitalization during the period 2011-2018 (RO billion)

7.22 7.79 3.17

8.19 7.13 2.63

8.94 6.36 1.99

8.53 5.38 1.87

9.31 4.04 1.22

1.12

0.80

0.56

9.46

7.80

3.58

7.02 2.76

3.06

2018

2017

2016

2015

2014

2013

2012

2011

Public Joint Stock Company Closed Joint Stock Company Bonds and Sukuk


Primary Market: Continuation of Primary Market Activities in 2018The primary market is the market where securities are offered to the public in accordance with the applicable laws and regulations.

The activities of the primary market continued in 2018 which enhances the trend that the Omani capital market would play a greater role in funding the huge projects. CMA considered and approved 12 issues at a total value of RO 380.2 million comprising various securities such as shares and bonds which resulted in increasing the capitals of public listed companies for funding needs and for the purpose of meeting the requirement of Basil 3 related to capital adequacy of commercial banks.

Public Offerings- Shares

In 2018 two prospectuses for public offerings were considered and approved the first was the prospectus of Arabian Falcon Insurance in compliance with Royall Decree NO. 39/2014 which obligated the insurance companies to change their legal status to public joint stock companies. Also the shares of Dhofar Power Generation were offered to the public in compliance with obligations in the project founders’ agreement to offer 40% of the issued and paid up capital to the public. The issues witnessed turnout by local and foreign investors with proceeds of more than RO 27 million of the offered value of RO 20 million with 1.37 coverage. The company changed the issue price by reducing it from 259 Baisas to 225 Baisas and extended the subscription period by one additional month which resulted in the oversubscription.

CMA considered and approved issue rights prospectuses of three companies at a total value of about RO 84.6 million for National Finance, Dhofar Insurance and Bank Dhofar.

12

3 6

Total

24.9 5.0

84.6 265.7

380.2

12

Figurer ( 4 ) Approved offerings in 2018

Number of offeringsValue (RO million)

Public Offerings (Shares)

Rights Issue (Bonds)

Rights Issue (Shares)

Private Placement

(Bonds)


Table ( 2 ) Results of public offerings (shares) in capital market during the past period 2012-2018

Year Company Name Number of shares Issue value (RO) Coverage

2018Arabian Falcon Insurance 25,825,415 4,906,829 0.29

Dhofar Power Generation 88,896,000 20,000,600 1.37

2017

Muscat City Desalination 54,442,640 6,316,346 19.3

Al Ahliyah Insurance 25,000,000 7,500,000 2.48

National Insurance 66,250.000 21,200,000 1

Vision Insurance 25,000,000 4,500,000 0.49

Omani Qatari Insurance 25,000,000 4,000,000 1.36

2016 - - - -

2015 Phoenix Power 511,910,511 5631015621 18.9

2014

Al Maha Ceramics 20,000,000 7,940,000 20

Al Sawadi Power 250,042,219 32,505,488 10.5

Al Batinah Power 236,210,601 30,234,957 10.8

Takaful Oman 100,000,000 10,200,000 5.2

2013

Al Sharqiyah Water Desalination 2,282,051 2,425,820 13.16

Simpcorp Salalah 33,410,019 53,121,930 10.6

Al Madina Insurnce 66,666,670 9333334 3.9

2012

Bank Nizwa 600,000,000 61,200,000 11.15

Al Izz Bank 400,000,000 40,800,000 1.14

Bond and Sukuk Market: Booming Debt Market in OmanThe year 2018 witnessed approval of seven corporate bonds at total value RO270.7 million comprising perpetual bonds, subordinate bonds and convertible bonds to shares. Total value of the listed corporate bonds and Sukuk was RO 277.4 including Golden Group Sukuk at RO 50 million. CMA approved the Golden Group’s Sukuk in 2017 to be issued in phases. Total value of corporate bonds and Sukuk was 539.85 million in 2018.

Four issues of government bonds were made in 2018 at a total value RO 500 million. Total value of government bonds and Sukuk listed on MSM up to the end of 2018 RO 2.68 billion.

There are 31 bonds listed on MSM including 17 government bonds and 14 corporate bonds. The number of listed Sukuk is 5 including one sovereign Sukuk and 4 corporate Sukuk.


Table ( 3 ) Bonds and Sukuk in the Stock Market in Oman up to end of 2018

Bonds Sukuk Total

NumberVolume (Million

Value (RO Million)

numberVolume (Million

Value (RO Million)

NumberVolume (Million)

Value (RO Million)

Government 17 24.3 2430 1 250 250 18 274.3 2680

Corporate 14 313.70 415.74 4 155.5 124.11 18 469.20 539.85

Total 31 338 2846 5 405.5 374.11 36 743.5 3220

The table blow shows the corporate and government bonds and Sukuk listed in the securities market in Oman in 2018

Corporate Bonds and Sukuk in 2018

Bonds/Sukuk VolumeNominal

value (RO)Total value

(RO)Interest rate

(%)

Oman Arab Bank perpetual unsecured subordinated bonds 42,553,000 1 42,553,000 7.5

Golden Sukuk 1 50,000,000 1 50,000,000 6.5

National Finance subordinated perpetual bonds 18,200,000 1 18,200,000 8

Oman Financing Services bonus bonds 2018 8,303,720 0.1 830,372 4

Tageer Financing subordinated unsecured non-convertible bonds 6,150,000 1 6,150,000 5

Omnivest perpetual bonds 60,637,586 1 60,637,586 7.75

Dhofar Insurance convertible bonds 5,000,000 1 5,000,000 7.5

Ahli Bank perpetual unsecured bonds 54,000,000 1 54,000,000 7.5

Bank Dhofar perpetual tier I bonds 2018 40,000 1,000 40,000,000 7.5

Total 244844,306 277,370,958

Government Bonds in 2018

Bond name VolumeNominal

value (RO)Total value

(RO)Interest rate

(%)

Government Development Bonds issue 56 1,500,000 100 150,000,000 6

Government Development Bonds issue 57 1,000,000 100 100,000,000 4.75

Government Development Bonds issue 58 1,500,000 100 150,000,000 5.75

Government Development Bonds issue 59 1,000,000 100 100,000,000 5

Total 5,000,000 500,000,000



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Capital MarketPerformanceSecondary Market


MSM index performance in 2018

2018 MSM Index Performance

MSM 30 closed in 2018 at 4323.740 points falling by 775.54 points at 15.21% compared the previous year. Trading values were RO 763 million plummeting by 23.17% compared to the previous year which was RO 995 million. Market capitalization was RO 18.18 billion increasing by1.26% compared to the previous year which was RO 18.0 billion.

The index reached its peak at 5123.22 points on 7/1/2018 and the lowest level was 4312.94 points on 25/12/2018. The difference between the peak and lowest value for the index was 810.280 points. The highest trading value was RO 66.01 million on 31/5/2018 and the lowest was RO 0.27 million on 9/12/2018. Average daily trading during the year was RO 3.12 million compared to RO 4.0 million during the previous year a 23.17% drop. Number of trading days was 247 days and number of transactions was about 150,000 transactions.

Sharia compliant MSM index closed the year 2018 at 591.9 points a yearly decline by 17%. The Sharia compliant index comprises 15 companies and measures the performance of the shares of Sharia compliant companies in accordance with Sharia principles issued by the Accounting and Audit Organization for Islamic Financial Institutions. (AAOIFI) and the compliance is reviewed quarterly.

Figure ( 1 ) 2018 MSM Index Performance

5,123.22Highest level

7 January2018.

4,312.94Lowest level25 December

2018.

4999

.96

5003

.37

4773

.51

4729

.05

4606

.68

4571

.75

4336

.55

4419

.27

4543

.68

4422

.91

4412

.06

4323

.73

January May

September

FebruaryJune

OctoberMarch

July

NovemebrApril

August

December

2018 Omani Capital Market Performance Consistent with Emerging and Global Markets

The decline in the MSM 30 index in 2018 was largely consistent with the performance of the global, Arab and GCC markets with limited exceptions compared to certain regional countries. On comparing the performance of MSM index with global financial markets we notice that most global markets have dropped sharply in 2018 such as the Chinese market, German, British, French, Swiss, South Korean and Japanese stock exchanges and others. Arab stock exchanges indices dropped in Egypt, Dubai, Palestine, Lebanon, Amman and Morocco.


Hence, the indices of all global markets sharply dropped in 2018 with the exception of few. Certainly, the current status of the global economy is a result of a number of adverse phenomena that impacted the performance and adversely reflected on the performance of the global financial markets throughout the glob and we are part of this glob and act within the tendencies of the global economy.

Table ( 1 ) Arab & International Indices YTD% (2018/2017)

America Markets

NASDAQ -3.88%

DJIA -5.63%

S&P500 -6.24%

Europe Markets

FTSE -12.48%

DAX -18.26%

CAC40 -10.95%

SMI -10.15%

AEX -10.41%

IBEX -14.97%

FTMIB -16.15%

OMXC20 -12.95%

MCX 12.30%

Asian Markets

N225 -12.08%

STI -9.82%

SETI -10.82%

HIS -13.61%

JKSE -2.54%

KLSE -5.91%

CSI 300 -25.31%

GCC& Arab Markets

ADX 11.75%

BSE 0.42%

QE 20.83%

TASI 8.31%

KSE 5.16%

DFM -24.93%

MSM -15.21%

ASE -10.25%

AGX -13.21%

MASI -8.27%

TUNINDEX 15.76%

PSE -7.65%

BSI -14.90%


Foreign Investment in the Omani Capital MarketThe Capital Market Authority endeavors to enhance the efficiency of the regulatory and legislative frameworks of the capital market sector for the protection of market participants and boosting the confidence. The policy adopted by CMA is based on economic openness and opening the doors for foreign investors in line with the interests of the national economy which will positively reflect on investment in the Omani capital market and for attracting more capital.

A look at the foreign investments in the sector indicates decline in the ratios of foreign holdings in the capital of listed public joint stock companies from 28.07% at the end of 2017 to 26.08% in 2018. Buying by non-Omanis was RO 99 million at 12.95% and selling was RO 261 million at 34.16%. Non-Omani investment transactions have dropped by RO 161.8 million at 21.21%. The figure contains statistics on the number of shareholders and total market value as per nationality up to the end of 2018.

Table (2) Nationality Group Ownership - General statistics in listed companies as 31/12/2018

Group Country Shares Quantity Capital Market ValuePercentage of

Market Value %

OMAN 22,696,268,720 234,284,623,7 53,324,488,69 73.73%

FORG 35,500,836,06 35,761,956,66 69,756,145,13 9.64%

GULF 47,827,531,46 49,798,615,25 11,855,396,88 16.39%

ARAB 12,222,487,6 12,561,719,2 17,231,408,86 0.24%

Total 31,151,330,348 3,211,013,675.30 7,232,781,417.20 100.00%

2,707Number of new Shareholders accounts in

2018

430,524 Number of new Shareholders

account till theend of 2018


General meetings of Public Joint Stock Companies during 2018Public joint stock companies held their annual general meetings during the statutory period thanks to CMA’s policy of early determining the initial timings for all the companies and urging them to comply with the provisions regulating the general meetings. The number of general meetings held during the year were 161 general meetings as follows:

General Meetings of Public Joint Stock Companies during 2018

Type of meetingNotices of general

meetingsGeneral Meeting with

present quorum

General Meeting without presence of

quorum

Annual ordinary 112 110 2

Ordinary 15 15 0

Extraordinary 34 31 3

Total 161 156 5

The legislature conferred on the general meetings of joint stock companies a regulatory role to ensure the protection of the rights of shareholders and small investors, to ensure integrity and to curb conflicts of interests between related parties as the general meeting is the supreme authority in any company and have jurisdiction to make resolutions in all material matters of the company beyond the powers of the board of directors. Their resolutions are final and should be enforced. The general meeting of the company has wide powers in voting on the resolutions, objecting the resolutions in addition to measuring the efficiency of the directors and their ability to efficiently directing the management and their role in electing the directors who are able to lead the companies to achieve the interests of the shareholders.

Satisfactory Performance of Public Joint Stock Companies and Continuation of Distribution of Dividends in 2018The capital of the companies listed on MSM was RO 6.34 billion at the end of 2018 including RO 3.19 billion capital of public joint stock companies and RO 3.15 billion corporate and government bonds and Sukuk. Public joint stock companies achieved good rates of growth in profits. Total net profits of public joint stock companies in 2018 was about RO 820 million compared to RO 615 million in 2017 with annual rate of growth 33%. The number of listed public joint stock companies was 110 in 2018. The financial year of 102 companies ends on 31 December and 8 with different ends of their financial year.

With regard to dividends 63 companies distributed dividends at RO 415 million in 2018 at 13% higher than 2017. 8 companies distributed bonus shares and cash dividends while only one company handed out bonus shares. Total bonus shares were 513 million shares and total cash dividends were 51% of the net profits of the public joint stock companies.



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Insurance SectorPerformance


Role of the Insurance sector in the national economy:

Contribution to the GDP of the Sultanate is about 1.52%

Due to the importance of the role played by the insurance industry in the national economy CMA attached considerable care to develop the sector in the regulatory and legislative aspects. The financial statements indicate the contribution of sector in the GDP was 1.52% in 2018 compared to 1.63% in 2017.

Table ( 1 ) Ratio of insurance premiums to the Sultanate’s GDP 2011-2018

2011 2012 2013 2014 2015 2016 2017 2018

GDP (b) 26,187 29,497 30,332 31,215 26,534 25,727 27,968 30,488

Insurance Premiums (m) 218 326 359 396 442 450 451 463

% of GDP 0.83% 1.11% 1.18% 1.27% 1.67% 1.75% 1.63% 1.52%

Table ( 2 ) Per capita insurance expenditure (RO) (2011-2018)

2011 2012 2013 2014 2015 2016 2017 2018

Population (Million) 3.295 3.623 3.855 3.992 4.159 4.414 4.559 4.684

Insurance Premiums (Million)

218 326 359 396 442 450 451 463

Per Capita Insurance expenditure (RO)

66.16 89.98 93.13 99.20 106.28 101.95 98.93 98.85


Figure ( 1 ) Gross Direct Premiums of Insurance Companies (RO Million)

2017

2017

2017

2018

2018

2018

322.056

33.216

355.272

345.253

35.034

380.287

7%

5%

7%

4%

(-3%)

3%

(-14%)

(-13 %)

(-13%)

68.144

28.156

96.300

390.199

61.372

451.571

58.712

24.597

83.308

403.964

59.631

463.595

General Insurance

Life Insurance

Total

Change %

Change %

Change %

Insurance Companies

Insurance Companies

Insurance Companies

National insurance Companies



Foreign insurance companies



Total

Total

Total

3% Insurance premiums growth and RO 463,595 million unwritten premiums in 2018Gross direct written premiums of insurance companies have increased in 2018 to reach RO 463.595 million compared to RO 451.571 million in 2017. Gross direct premiums for general insurance have increased to RO 403.964 in 2018 compared to RO 390.199 million in 2017. Gross direct premiums of life insurance have decreased to RO 59.631 million in 2018 compared to RO 61.372 million in 2017.


Health insurance represented the highest percentage of the gross direct premiums of national companies at about 36% of the gross direct premiums which is higher than the year 2017 which was 32% followed by motor insurance at 33% which is lower than the year 2017 which was 36%. The figure below shows distribution of gross direct premiums on the general insurance branches in2017-2018.

Figure ( 2 ) Distribution of direct premiums on insurance branches (gross)in 2017-2018

36% 33%

2017 2018

5% 4%

2%

2%

4%

3%3% 2%

9%

9%9%

11%

32% 36%

MarineProperty Other

HealthLiabilityEngineeringLife

Motor

2018 Growth in the Number of insurance policies 17%Number of general and life policies issued by insurance companies in 2018 have increased by 17% to 2.007 million policies including 1.722 million general insurance policies and 285,664 life policies compared to 1.722 million policies issued in 2017 including 1.614 million general insurance policies and 108,549 life insurance policies.

General and life insurance policies issued by national insurance companies in 2018 were 1.574 million policies including 1.510 million general insurance policies and 63,576 life insurance policies while the number of insurance policies issued in 2017 was 1.404 million policies including 1.371 million general insurance policies and 32,347 life insurance policies. The number of general and life insurance policies issued by foreign insurance companies in 2018 was 433,367 policies including 211,279 general insurance policies and 222,088 life insurance policies compared to 318,525 policies in 2017 including 318,525 general insurance policies and 76,202 life insurance policies.


Table ( 3 ) Total Number of insurance policies issued by insurance companies (million)

2017

2017

2017

2018

2018

2018

1,371,931

32,347

1,404,278

242,323

76,202

318,525

1,614,254

108,549

1,722,803

10%

97%

12%

-13%

191%

36%

7%

163%

17%

1,510,917

63,576

1,574,493

211,279

222,088

433,367

1,722,196

285,664

2,007,860

General Insurance

Life Insurance

Total

Change %

Change %

Change %

Insurance Companies

Insurance Companies

Insurance Companies




Foreign insurance Companies



Total

Total

Total

Retention Ratio: 2018 retention ratio of insurers in Oman 58.72%Retention ratio of insurance companies in 2018 was about 58.72% increasing compared to 2017 in which the retention ratio was 57.46%. Audited financial statements for 2018 suggest retention ratio for national insurance companies in 2018 was about 54.92% compared to 55.05% in 2017. Retention ratio for foreign insurance companies has increased from 66.23% in 2017 to 75.71% in 2018. Regarding retention ratio by type, the average retention ratio for national insurance companies in 2018 was 54.92%, retention ratio for motor (comprehensive and third party) was the highest compared to other types at 90.71% and 90.89% consecutively. Retention ratio for motor (comprehensive and third party) in foreign companies was the highest compared to other types at 96.58% and 97.17% consecutively


Takaful Insurance:

17% Growth of Takaful Premiums in the Sultanate Gross direct premiums of Takaful companies in the Sultanate have increased by 17% to RO 53.584 million in 2018 compared to RO 45.762 million in 2017 representing 12%% of the gross direct premiums of the insurance companies. Gross premiums of general Takaful business increased to RO 46.914 million compared to RO 40.523 million. General Takaful represents 16% of the total general insurance of all the companies of the sector. Gross direct premiums of Takaful companies for family Takaful have increased by 27% to RO 6.670 million in 2018 compared to RO 5.238 million in 2017. Family Takaful represents 11% of the total life insurance business of all the companies.

Table ( 3 ) Summary of direct premiums, indemnities and total number of polices issued by Takaful companies in 2017-2018 (million)

General Takaful Family Takaful Total

2017 2018Change

%2017 2018

Change %

2017 2018Change

%

Gross direct premiums 40.532 46.914 16% 5.239 6.670 27% 45.762 53.584 17%

Total indemnities 54.145 87.012 61% 2.366 2.804 18% 56.511 89.815 59%

Total policies 102.561 154.379 50.5% 6.104 25.402 316% 108.665 179.781 65%

Total commissions and production costs 2.322 3.504 51% 0.276 0.451 63% 2.598 3.955 52%

Total administrative expense 5.829 3.726 -36% 0.771 0.401 -48% 6.599 4.126 -37%

Total assets 187.280 109.446 -42% 7.354 9.738 32% 194.634 119.184 -39%

Table ( 4 ) Retention Ratio of Insurance Companies by Type

2017

2018

Total

57.46%

Total

58.72%

Difference

-0.13%

Difference 1.26%

Difference

9.48%

55.05%

54.92%

66.23%

75.71%

National

National

Foreign

Foreign


13

46

7 3 6

5 3

12 8 29

9

28

0

Figure ( 5 ) 2018 ratio of direct premiums, indemnities and total number of policies issued by Takaful companies to total of insurance companies

11 % 7 % 11 % 9 % 23 % 12 %

Total

169

Total Assets

Total Number of Policies

Total Administrative Expense

Total Indemnities

Total Commissions and Production Costs

Total Direct Premiums

169 Procedures related to insurance institutions’ regulation

In 2018 169 approvals have been issued as follows:

Licensing Insurance

Agent

Appointments

Renewal of license of insurance

company

Licensing company for valuation of vehicles cancelled as result of

traffic accident

Bancassurance

Renewal of Licenses of

Insurance Agent

Cancellation of Insurance

Agent

Licensing Insurance Broker

Renewal of license for

insurance broker

Approval of Actuary

Licensing Insurance Company (Merger)

Products Opening Branches


Training and Omanization in Insurance Sector

Training

Nine training programmes were executed as part of Tamkeen programme with the participation of 237 national cadres working in the insurance sector.

Training and qualification of employees of the insurance sector to gain skill and knowledge is one of the key objects of CMA in the insurance industry development process. Therefore, CMA adopted Tamkeen project to prepare the national cadres to take over senior and medium administrative roles.

The figure below shows the training programmes executed in 2018 and number of participants:

30

27

23

29

28

21

28

27 27

Total237

Insurance sales and marketing

Health insurance pricing and

underwriting management

Insurance and solvency accounting

Insurance brokers’ workshop

Role of statistics in insurance

Risk management in insurance companies

Medium management skills

Fire insurance

Technical skills of managers of insurance companies branches

Table ( 6 ) Training programmes conducted in

Omanization

2018 Omanization in the Insurance Sector 71%Table No. ( 4 ) shows the number of employees of the insurance companies, brokers and agents at the end of 2018 was 3175 of which 2241were Omanis in the various technical and managerial roles in the insurance companies, brokers and agents comprising 71% of the employees of the sector. Omanization ratio in the national and foreign companies was 74% and 77% consecutively.


Table No. ( 4 ) Number of Employees of Insurance Companies and Brokers

2017 2018

Omani Expatriate TotalOmani- zation

ratioOmani Expatriate Total

Omani- zation

ratio

National InsuranceCompanies 1162 498 1660 70% 1353 464 1817 74%

Foreign InsuranceCompanies 248 101 349 71% 298 91 389 77%

Reinsurance 28 14 42 67% 33 15 48 69%

Brokers 321 237 558 58% 377 232 609 62%

Agents 171 122 293 58% 180 132 312 58%

Total 1,930 972 2,902 67% 2,241 934 3,175 71%

Branches of Insurance Companies The data in Table ( 5 ) indicates that the branches of insurance companies was 195 branches throughout the Sultanate in 2018 with concentration in the Governorate of Muscat with 74 branches. Branches of insurance brokers and agents in 2018 were 90 and 155 consecutively. The Governorate of Masandum has the least number of insurance companies, brokers and branches with a total of two branches of insurance companies and one insurance agent and no branches for brokers.

Table ( 5 ) Number of Branches of Insurance Companies and Brokers in the Governorates

Insu

ranc

eIn

stit

utio

ns

Mus

cat

Gov

erno

rate

So

uth

Bat

inah

Gov

erno

rate

No

rth

Bat

inah

Gov

erno

rate

Al D

akhl

iyah

Gov

erno

rate

So

uth

Sha

rqiy

ahG

over

nora

te

No

rth

Sha

rqiy

ahG

over

nora

te

Al D

hahi

rah

Gov

erno

rate

Al B

urai

mi

Gov

erno

rate

Dho

far

Gov

erno

rate

Mas

and

amG

over

nora

te

Al W

usta

Gov

erno

rate

To

tal

Companies 74 13 24 17 9 14 6 13 22 2 1 195

Brokers 49 7 9 3 5 6 3 1 6 0 1 90

Agents 62 12 26 14 5 7 8 8 4 1 0 147



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Regulatory Framwork


Regulatory Framework:CMA plays key role in setting out the legislations regulating the capital market and insurance sector and endeavours to upgrading and amending the laws and regulations in line with the regional and global developments taking into consideration the uniqueness of the Sultanate in a way preserving and protecting the rights of all the stakeholders in the capital market and insurance sector. Below are the key legislative developments in 2018:

Figure ( 1 ) 2018 Legislative Developments

CMA 2018 REGULATORY INVESTIGATIONS AND INTERVENTIONSThe CMA supervises and regulates MSM, MCDC, public joint stock companies, the companies operating in the filed securities, investment funds, insurance companies, agents, brokers and credit rating companies. The tables below shows compliant and non-compliant companies in 2018

Table ( 1 ) 2018 Listed Companies Compliance with Disclosure Provision

Issue2018

Compliant Non-compliant

Unaudited initial annual results 102 1

Audited annual financial statement 100 3

First quarter initial financial statements 106 3

First quarter financial statements 109 1

Second quarter initial financial statements 108 2

Second quarter financial statements 107 3

Third quarter initial financial statements 107 4

Third quarter financial statements 110 1

Disclosure of the resolutions of the general meeting 98 5

Timely disclosure of material information 90 21

Note: Figures represent companies not funds. Difference between quarters is due to conversion of certain companies to closed companies as well as recording new companies.

Legislation

Amendment of certain provisions of the Executive Regulation of the Capital Market Law.

Regulation for Real Estate Investment Funds

Establishment of Fund for Aid of Injured Persons, Heirs of Deceased and Compensation for Damage in Traffic Accidents and Issuance of its Articles of Association

Flexible Working Hours for CMA’s Employees

Regulation for Accreditation of Auditors

Date of Issue

4 January

4 January

9 January

5 July

26 November

Source: Department of Legal Affairs and Enforcement


Table ( 2 ) 2018 Listed companies defaulting on financial statement disclosure provisions

Required Statements Action

No

n-c

om

plia

nt

Disc

on

tinu

atio

n

Cau

tion

ing

dire

ct th

e

atte

ntio

n

Re

ferra

l to

en

forc

em

en

t/C

on

cilia

tion

Su

spe

nd

share

tra

din

g

Un

de

r co

nsid

era

tion

Disc

iplin

ary

D

ecisio

n

Disclosure of initial un-audited annual results

1 1

Disclosure of audited annual financial statements

3 3

Disclosure of the resolutions of the general meetings

5 1 1 3

Disclosure of the initial financial statements of the first quarter

3 1 3

Disclosure of the unaudited financial statements of the first quarter

1 1

Disclosure of the initial financial statements of the second quarter

2 2

Disclosure of the unaudited financial statements of the second quarter

3 2 1

Disclosure of the initial financial statements of the third quarter

4 1 2 1

Disclosure of the unaudited financial statements of the third quarter

1 1

Disclosure of material information during trading or delay in disclosure of material news

21 10 7 2 2

Source: CMA Trading Surveillance Department 2018

CMA 2018 Disciplinary DecisionsThe CMA issued disciplinary decisions against 13 companies in the capital market sector and two companies and audit firm in the insurance sector in 2018 issued by the Executive President’s Office including warning, cautioning and fines as can be seen in the table below.


Table ( 3 ) 2018 - Disciplinary Decisions in the Capital Market Sector

InfringerDecision

No.Type Reasons

Date of Decision

Gulf Custody Company

2/2018 Warning Violation of the provisions of Article 146 of the Executive Regulation of the Capital Market Law

4 March

Al Madinah Investment

3/2018 Cautioning Violation of Clause (b) of the provisions of Article 123 of the Executive Regulation of the Capital Market Law

25 March

Global Financial Investment


25 March

Falcom Financial Services


25 March

Ahli Bank 6/2018 Cautioning Violation of Clause (b) of the provisions of Article 123 of the Executive Regulation of the Capital Market Law

25 March

International Alliance Muscat


25 March

Gulf Custody Company


25 March

National Management and Projects


25 March

Sohar Power 10/2018

Warning and obligating it to

restate its financial statements in

accordance with IFRS 17

Violation Article 5 of the Capital Market Law

16May

National Management and Projects

12/2018 CautioningViolation Article 149 of the Executive Regulation of the Capital Market Law

22 July

HC Shah Audit Firm

13/2018 Warning Violating certain international accounting and auditing standards

12 August

KPMG 14/2018

Suspension of the firm from auditing

CMA regulated companies for one

year

Violating Articles 112 and 113 of the Commercial Companies Law

13 November


Table ( 4 ) 2018 Disciplinary Decisions in Insurance Sector

InfringerDecision

No.Type Reasons

Date of Decision

Vision Insurance 11/2018

- Fine RO 5,000- Refund the

amounts received from the violation

Violation of Schedule (b) of the Unified Motor Insurance Policy 22 July

Al Afdhal Insurance Services (Insurance agent)

15/2018 Warning Violation of the provisions of Article 12/4 of Insurance Agents Licencing Requirements

6 December

Table ( 5 ) 2018 Disciplinary Decisions for Audit Firms

InfringerDecision

No.Type Reasons

Date of Decision

Moor Stephens Audit Firm

1/2018

Suspension of the firm from auditing CMA regulated companies for one year

Violating Articles 112 and 113 of the Commercial Companies Law, Article 5 of the Capital Market Law and article 282 of the Executive Regulation of the Capital Market Law

17 January

George Mathew Audit Firm

16/2018 Cautioning Violation of the provisions of Article 20 of Insurance Brokers Regulation

6 December

Source: CMA Department of Legal Affairs and Enforcement 2018

International CooperationTo enhance cooperation and communication between CMA and the external entities operating in the global and regional capital markets and insurance sector CMA was keen to conclude a number of memoranda of understanding in various fields.

such as exchange of information in the regulatory and supervision aspects to provide protection to investors and policyholders as well as exchange of views and cooperation in training and exchange of expertise, technical information and the information relating to the legislations of the capital market and insurance sector, cross border investment management, creation of financial products and activities in the field of investment management. In the year 2017 the following memoranda of understanding were concluded:

Figure ( 2 ) Memoranda of Understanding CMA concluded in 2018

Date

May

November

Entity

Exchanges and Securities Commission Thailand

Multilateral Memorandum of Understanding with International Association of Insurance Supervisors (IAIS)

Source: Media & External Relations Department 2018


CMA also participated in a number of meeting related to the capital market and insurance sector to acquaint with the developments such as the 12th Meeting of Arab Securities Commissions in Lebanon, the 43rd Annual Conference of IOSCO in Budapest, Hungary, the Semi Annual Meeting of Arab Insurance Supervisors in Dubai, the Annual Meeting of the International Association of Insurance Supervisors in Luxemburg, the 17th Meeting of Chairpersons of GCC Securities Commissions in Kuwait.

The Companies Operating in the Field of SecuritiesThe number of the companies operating in the field of securities licensed by CMA at the end of 2018 was 36 companies including 17 companies carrying out brokerage business and 19 companies carrying out other than brokerage business. An application for licensing Tharaa Global was considered and the license was issued in the beginning of 2019. Total authorized capital, minimum capital required to carry out various activities was RO 68.9 million Thirty Four companies are local companies and 2 are foreign. Omanization ratio in the companies was 60%.

Table ( 5 ) The Companies Operating in the Field of Securities

Activity nameNumber of licensed

companiesMinimum capital

requirements

Brokerage 17 11,900,000

Issue Management 18 3,600,000

Research and Investment Advice 17 3,400,000

Marketing non-Omani Securities 15 3,000,000

Portfolio Management 17 3,400,000

Management of Investment Funds 15 3000,000

Investment Manager 12 2,400,000

Custodian 9 27,000,000

Margin Financing 8 8,000,000

Issuer of Structured Instruments 3 3,000,000

Agent for Bondholders 1 200,000

Market Maker 0 0

Source: Department of Capital Market Institutions Audit and Regulation

Investment Funds

Investment funds are collective investment schemes investing money from investors and manage in accordance with specific investment strategy and objects set out by the fund manager to achieve benefits the investor cannot attain alone in light of his limited resources. CMA regulates and supervise MSM listed and unlisted funds. The figure below shows the types of funds:


Figure ( 3 ) Types of Investment Funds

Figure ( 4 ) 2017-2018 Investment Funds Income

19 18

3

169

6 7

37,299

126,229

51,818

308,000

2,269,000

38,000

4,809

159,198

35,072

81,414

147,727

150,655

198,132

115,580

147,790

108,207

-

192,495

8,496,650

323,172

445,877

219,030

234,000

86,000

141,000

391,748

59,065

663,159

755,773

839,079

523,521

6,591

370,477

223,713

81,460

10,098

1,277,755

3,828,246

Investment Fund Up to end 2018 (25 funds)

Open ended funds

Closed ended funds

Public offering

Private placement Unlisted Listed

Sharia compliant

funds

Fund

Al Kuwthar Fund

Fincorp Al Amal

Majan Capital Fund

Bank Muscat – Muscat Fund

Bank Muscat Oryx Fund

Bank Muscat - Money Market Fund

Al Hilal MENA Fund

Nation Bank of Oman GCC Fund

Uphar GCC Fund

United GCC Fund

First Mazoon Fund

Vision Emerging GCC Fund

Vision focused Fund

Vision Real Economy GCC Fund

Vision Al Khair GCC Fund

Vision Emerging Oman Fund

Horizons Premier Fund

Tanmia GCC Fund

Oman Growth Fund

Total income for 9 months ending

on 30/9/2017

Total income for 9 months ending

on 30/9/2018


Figure ( 5 ) Net Asset Value for the Funds 2017-2018

NAV (31/12/2017)

NAV (30/9/2018)

Change (%)

0.866

0.966

1.111

0.875

1.788

1.075

0.838

0.812

0.989

1.042

1.027

1.002

0.893

1.238

0.930

1.020

0.000

0.358

0.872

0.923

1.015

1.128

0.756

1.803

1.099

0.726

0.758

1.030

1.070

1.104

1.039

0.893

1.220

0.955

0.986

0.995

0.408

0.822

7%

5%

2%

-14%

1%

2%

-13%

-7%

4%

3%

7%

4%

0%

-1%

3%

-3%

0%

14%

-6%

Fund

Al Kuwthar Fund

Fincorp Al Amal

Majan Capital Fund

Bank Muscat –Muscat Fund

Bank Muscat Oryx Fund

Bank Muscat- Money Market Fund

Al Hilal MENA Fund

Nation Bank of Oman GCC Fund

Uphar GCC Fund

United GCC Fund

First Mazoon Fund

Vision Emerging GCC Fund

Vision focused Fund

Vision Real Economy GCC Fund

Vision Al Khair GCC Fund

Vision Emerging Oman Fund

Horizons Premier Fund

Tanmia GCC Fund

Oman Growth Fund


2018 Complaints HandlingThe Institutional Services and Awareness Department received 492formal complaints in 2018 in addition to a number of non-formal complaints, which were settled over the telephone between the complainant and the company. Complaints were as follows:

A Number of inquiries and non-formal complaints were received by telephone or posted on social media pages of CMA which were settled directly between the company and complainant.

Formal complaints relating to

policyholders 490

Formal complaints relating to securities

2



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Qualification andTraining


3 0

3 0

8 1

4 5

65 35

99 49

148

3 1

15 7

1 0Total

Human ResourcesThe CMA is keen to diversify its work force and attracting competencies to achieve its objects and duties in regulating the capital and insurance sectors, hence it endeavors to diversify the educational levels and specializations of its 148 staff members. The figure below shows distribution of employees according to educational level and gender:

Figure ( 1 ) CMA employees by education level and gender:

Qualification

Primary

Intermediate

General Diploma

Diploma

Bachelor

Masters

PHD

Primary

Intermediate

General Diploma

Diploma

Bachelor

Masters

PHD


Total

Total

38

26% 23% 16% 35%

34 23 51

146100%

Number

Number

%

%

24 17 35 33

22% 16% 32% 30% 100%

109

Qualification and TrainingCMA considers it employees the source of its strength and success . Therefore, devised strategic plan for developing their skills through training, conferences, meetings and other official missions to positively contribute to achieving CMA’s vision and mission in accordance with well designed methods. To this end it delivered to the employees 146 official missions and 109 training programmes covering diversified topics in the capital market and insurance sectors and operations sector which comprises administrative departments such as information technology, human resource, finance and administration. The other fields covered by official missions and training programmes were the departments reporting to the Office of the Executive President i.e. legal affairs, media and external relations and archives.

Figure ( 2 ) Distribution of Official Missions by Sector

Capital Market

CapitalMarket

Insurance

Insurance

Operations

Operations

Other

Other

Figure ( 3 ) Distribution of Training Programmes by Sector



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Organizational StructureContact Details


Organizational Structure of the Capital Market Authority

Board of Directors

Executive President

Audit Committee

Internal Audit Department

Executive President’s Office

Legal Affairs and Enforcement Department

Media and External Relations

Department

Inspection and Examination Department Archives

SectionProject

Management Section

Security Section

Director General, Institutional Services and Support

Vice President, Capital Market Sector

Vice President, Insurance Section

Human Resources

DepartmentCorporate Affairs

Department

Evaluation and Risk

Management Department

Information TechnologyDepartment

Investment Products Department

Audit and Financial Analysis

Department

FinancialAffairsDepartment

Capital Market Institutions Audit and Regulations Department

Insurance Institutions RegulationsDepartment

Administrative Affairs Department

Trading Surveillance Department

Medical Insurance Supervisions Department

Institutional Services and Awareness Department

Inspection and Compliance Department


Contact Details

Executive ManagementSenior Executive Management

Abdullah Salem Al SalmiExecutive PresidentPhone: 24823288

Email: [email protected]

Executive OfficeBader Salim Al-Mahrooqi

Director of the President’s Office and Head of Security SectionPhone: 24823218


Internal Audit DepartmentAbdullah Al buraiki

Director of Internal Audit DepartmentPhone: 24823215


Inspection and Examination DepartmentHuda Al Mamari

Director, Inspection and Examination DepartmentPhone: 24823184


Legal Affairs and Enforcement department Mohammed Saif Al Rashdi

Director, Legal Affairs and Enforcement Department Phone: 24823157


Media and External Relations DepartmentAbdullah Al Rabiei

Director, Media and External Relations DepartmentPhone: 24823344


Archives SectionYahiya Al Jabari

Director, Archives SectionPhone: 24823139


Insurance SectorAhmed Ali Al Mammari

Vice President, Insurance SectorPhone : 24823140

Audit and Financial Analysis DepartmentQais Said Al Suhai

Director, Audit and Financial Analysis DepartmentPhone: 24823267


Evaluation and Risk Management DepartmentNasser Ahmed Al Salhi

Director, Evaluation and Risk Management DepartmentPhone: 24823277


Medical Insurance Supervision Department Taibah Al Shamsi

Director, Medical Insurance Supervision Department Phone: 24823369


Insurance Institutions Regulation DepartmentRashid Al Rashdi

Director, Insurance Institutions Regulation DepartmentPhone: 24823177


Inspection and Compliance DepartmentAhmed al Harrasi

Director, Inspection and Compliance DepartmentPhone:24823114



Capital Market SectorMohammed Said Al Abri

Vice PresidentPhone: 24823221

Corporate Affairs DepartmentAbdullah Al Siyabi

Director, Corporate Affairs DepartmentPhone:24823212


Capital Market Institutions Audit and Regulation Department

Jamila Al HamhamiActing Director, Capital Market Institutions Audit

and Regulation Department Phone: 24823166


Rabab Al lawatiVice President for Operations

Phone: 24823132

Institutional Services and Awareness DepartmentYousf Al Bulushi

Director, Institutional Services and Awareness DepartmentPhone: 24823175

Email:[email protected]

Financial Affairs DepartmentUla Al Suwaid

Director, Financial Affairs DepartmentPhone: 24823177


Investment Products DepartmentMusab Al Lawati

Acting Director, Investment Products DepartmentPhone:24823115


Trading Surveillance DepartmentMajid Al alkiyumi

Director, Trading Surveillance DepartmentPhone:24823112


Administrative Affairs DepartmentJokha Al Hinai

Director, Administrative Affairs DepartmentPhone: 24823238


Human Resources DepartmentNadiya Al Alawi

Director, HRPhone: 24323369


Contact Details

Information Technology DepartmentSaleh Al Hashmi

Director, IT Phone: 24823162



Appendices•ListofCompaniesOperatingin

the field of Securities

•ListofInsuranceCompanies

•ListofInsuranceBrokers

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