Oman’s Jabal Asset Management has signed a memorandum of understanding with E Fund Management (Hong Kong) to develop cross-border exchange-traded funds between Oman and Hong Kong, potentially opening a new chapter for a market where ETFs have yet to establish a meaningful presence.
The agreement was signed on September 9 at the Belt and Road Summit 2026 in Hong Kong. Jabal said the partnership is intended to launch cross-market ETFs, although specific indices, structures, fees and listing dates have yet to be disclosed.
Oman Has an Opportunity to Build an ETF Market
Unlike Saudi Arabia and the UAE, Oman does not yet have a developed locally listed ETF ecosystem. The Muscat Stock Exchange offers listed companies, bonds, sukuk and mutual funds, while its index family includes the MSX 30, sector indices and a Shariah index. An established shelf of locally traded ETFs tracking those markets is absent.
That makes the Jabal-E Fund agreement more interesting than another product launch in an already crowded market.
ETFs could give MSX a new way to package Omani securities for domestic and international investors. A fund tracking the MSX 30, for example, could provide diversified Oman exposure through a single security, while Sharia-compliant and fixed-income ETFs could eventually build on indices and securities that already exist locally.
The potential benefit extends to the exchange itself. ETFs introduce another source of secondary-market trading and can broaden distribution of underlying securities. Their effectiveness would depend on market makers, spreads, creation and redemption arrangements, investor demand and sufficient liquidity in the underlying market.
Hong Kong Could Provide the First Bridge
The first products may instead focus on giving Omani investors access to Asia. E Fund has an established Hong Kong ETF business covering Chinese equities and other index strategies, giving Jabal a partner with experience in ETF manufacturing and trading infrastructure.
An Oman-listed vehicle providing exposure to Chinese or Hong Kong equities is one possibility. A reciprocal Hong Kong-listed ETF covering Oman or GCC securities would be more ambitious, potentially putting regional equities in front of a much larger Asian investor base.
Saudi Arabia has already demonstrated demand for this connection, with locally listed ETFs providing exposure to Hong Kong and Chinese equities. The UAE has also expanded its range of domestic, regional and international ETFs.
Oman is starting from a different position. Rather than competing for market share within an established ETF industry, it has an opportunity to build the market itself. The Jabal-E Fund partnership could become an early test of whether cross-border ETFs can help MSX add products, trading activity and international investor access at the same time.
