SICO, a leading regional asset manager, has partnered with Oman National Investment Development Company ‘Tanmia’, to launch the $126 million ‘Tanmia Liquidity Fund’.

 

Inaugurated at the Muscat Stock Exchange, the fund is dedicated to enhancing market depth and boosting liquidity on the exchange while achieving long-term capital growth for the fund. 

 

The timing of the fund's launch aligns strategically with the ongoing reforms within the Omani capital markets, coinciding with announcements of new IPOs, regulations pertaining to market making, and intensified marketing endeavours by MSX through roadshows and other promotional activities. 

 

Notable reform

In recent months, the MSX has undergone a series of initiatives geared towards bolstering the local capital markets, and there has been a notable reform in certain capital market regulations, particularly concerning the dividends tax. 

 

Khalid bin Awadh Al Balushi, CEO of Tanmia, emphasised that this project marks a milestone in Tanmia's long journey with its strategic partners. He said: "This fund is an extension of the company's journey - since its establishment in 1998 - in launching various investment initiatives and products that achieve investment returns and enhance the national economy. We at Tanmia always seek to promote sustainable investments and maximise value for shareholders, in collaboration with various financial institutions and regulatory authorities, to achieve the vision of Oman 2040."

 

Joint efforts

SICO’s Group CEO, Najla M Al Shirawi, commented: "The launch of Tanmia Liquidity Fund underscores the joint efforts of SICO and our partners in Oman, backed by the regulatory authorities in Oman. We're grateful to our partners for their confidence in our abilities and dedication to improving the liquidity for shares of listed companies. Highly liquid financial markets are essential in providing tangible advantages to the national economy. A robust and dynamic capital market can significantly increase economic growth and promote a more diversified economy.”

 

The partnership between SICO and Tanmia aims to emulate the prosperous model of the Bahrain Liquidity Fund, SICO's fund on the Bahrain Bourse. Since its inception, this fund has nearly tripled the market's overall liquidity. Consequently, the index has achieved impressive returns, while listed companies have enjoyed enhanced valuation.--TradeArabia News Service