Finance companies listed on Muscat Stock Exchange are performing well in first half of 2023

Muscat: Finance companies listed on the Muscat Stock Exchange recorded a good performance in the first half of this year. Their net profits rose to OMR 9.9 million, compared to about OMR 9.1 million in the same period last year, recording a growth of 8.7 percent. In their reports for the first half of this year, the companies praised the government’s efforts to control spending, reduce public debt, and raise the credit rating of the Sultanate of Oman, expecting that this will reflect positively on the finance sector and other economic sectors.

The National Finance Company recorded the highest profits at OMR 5.4 million, Omani Finance Services came in second place with net profits of OMR 1,565,000, then Taajeer Finance with profits of OMR 1,562,000, and United Finance ranked fourth with OMR 809,000. Muscat Finance came in fifth place with RO 590,000. Finance and financial leasing companies operate in a range of activities related to financing working capital, financing by installments, financing the purchase and leasing of vehicles, purchasing debts, temporary loans, and financing construction projects. Its services contribute to enhancing the performance of major companies.

The financing sector has witnessed good growth in recent years, benefiting from the increase in government spending and the increase in demand for credit. real estate in order to build housing units, and grant working capital facilities to encourage these companies to increase financing of small and medium enterprises and other sectors, in addition to accepting deposits from institutions, and granting personal loans to individuals according to specific controls, and this decision is expected to contribute to the growth of companies’ activities operating in the sector and increasing its contribution to the national economy.

Muscat Finance said that the new decision is expected to expand the business opportunities available to the company, stressing that it has a positive future outlook in terms of business. The assets of the five companies increased by the end of last June to one billion and 123.7 million Omani riyals, compared to one billion and 12.9 million Omani riyals in June of last year, recording a growth of 10.9 percent.

National Finance has the highest volume of assets at 470.3 million Omani riyals. Finance ranked second with RO 237.7 million, and Omani Finance Services ranked third with RO 212.9 million. The current year witnessed 4 companies increase their capital by distributing bonus shares to their shareholders, which prompted the sector’s capital to rise at the end of last June to 180.8 million Omani riyals, compared to 175.9 million Omani riyals in June last year.

The total shareholders’ equity in the five companies is about 300. One million Omani riyals. Despite the improvement in financial results in the first half of this year, companies see that there are a number of challenges facing the sector, and the United Finance Company said that the second quarter of this year witnessed a set of enormous challenges facing companies worldwide, especially in the financial sector.

While the National Finance Company saw that there is a gradual recovery of the economy from the effects of the Corona pandemic, indicating that it is monitoring the negative impact associated with fear of global recession and high oil prices. Taajeer Finance said that despite the challenges in the financing sector, the business environment reflects a positive outlook, and the improvement in the credit rating of the Sultanate of Oman reflects the positive global outlook towards the Omani economy.