The offering of OQ Base Industries, which includes substantial assets in petrochemicals and heavy industries, could mark one of Oman’s most substantial market listings. By partially divesting the subsidiary, Oman aims to stimulate the local stock market and potentially qualify for an emerging markets designation in the MSCI index—a move that requires the country to maintain a minimum of three sizable and liquid publicly traded stocks. The listing aligns with OQ’s larger privatization agenda that began in early 2023, a timeline that saw the successful IPO of Abraj Energy and OQ Exploration and Production. This latest offering is projected to attract significant local and international interest due to OQ’s established role in Oman’s industrial landscape.
The Omani government’s privatization strategy not only serves economic diversification goals but also seeks to address fiscal challenges exacerbated by fluctuating oil prices. Market analysts have noted that Oman’s public sector dominance has historically limited private sector growth, and this IPO wave is perceived as a critical step towards broader economic reforms. According to estimates, GCC-based IPOs, including those in Oman, raised over $3.6 billion through 23 listings in the first half of 2024 alone, reflecting the sustained appetite for equity investments across the region.