Investors have welcomed a decision by the Oman government to suspend a 10% withholding tax on dividends and interests paid out by listed companies.
The country’s securities regulator, the Capital Markets Authority (CMA), announced that the tax would initially be suspended for three years and could be extended further following a review.
According to the CMA, the intention is that more foreign investors will be encouraged to make investments in Oman’s capital markets.
The tax law was originally announced in February 2017 and sparked a sharp sell-off from foreign investors.
Net outflows have continued since then at a steady rate $420 million according to figures from the GBCM. Oman’s capital markets have also suffered from various macroeconomic challenges and weak investor sentiments, leading to a decline of the Muscat Securities Market of 11.5% during the first four months of 2019.
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