Oman's Jabal Asset Management is advancing plans for a Hong Kong-listed exchange-traded fund (ETF) that would invest 50% of its portfolio in Oman and 50% in other GCC markets, marking a potentially significant step in expanding international access to Omani equities.
The proposed allocation was disclosed by Issa Mohammed Al Battashi, Managing Director of Jabal Asset Management, during the ConFEAS 2026 conference in Muscat on October 13, according to Oman Observer.
The announcement provides the clearest indication yet of the fund's intended investment strategy, following a September partnership between Jabal and E Fund Management (Hong Kong).
As Nukoud reported when the agreement was signed, the two asset managers aim to develop cross-border ETFs connecting Oman, other GCC markets, Hong Kong and mainland China.
The latest development moves the initiative beyond the initial partnership announcement, although the fund's launch date, size and listing arrangements remain undisclosed.
Why the 50% Oman Allocation Matters
The proposed ETF would give Oman an unusually prominent position within a regional equity portfolio.
Unlike broad GCC funds, where country allocations may follow market capitalization or index construction rules, Jabal's proposed structure would reserve half the portfolio specifically for Omani securities.
For the Muscat Stock Exchange (MSX), such a structure could create an additional route for international capital to reach domestic companies.
The timing is particularly relevant. Oman's stock market has attracted growing attention following a strong year for local equities and progress toward potential emerging-market classification.
According to Nukoud's analysis of the MSX, the MSX 30 Index gained 29.6% through August 31, 2026, outperforming other major GCC market benchmarks during that period.
Oman was also recently added to FTSE Russell's Watch List for possible emerging-market reclassification.
The planned ETF and the country's index-classification ambitions represent separate developments, but both could improve international visibility for Omani equities.
Hong Kong Could Become a New Gateway to GCC Markets
The initiative builds on a September 9 memorandum of understanding between Jabal Asset Management and E Fund Management (Hong Kong).
The partnership aims to develop investment products linking Gulf and Asian financial markets, potentially allowing investors to access regional equities through exchanges outside the GCC.
Hong Kong provides an established ETF marketplace and proximity to a substantial Asian institutional and retail investor base.
A successful listing could offer investors a new route into Oman and other Gulf economies without requiring separate trading accounts across multiple regional exchanges.
For Oman, international distribution could be particularly valuable because its locally listed ETF market remains relatively underdeveloped compared with those of Saudi Arabia and the UAE.
Nukoud's GCC ETF Market Monitor outlines how regional exchanges have expanded their ETF offerings across equities, fixed income and thematic strategies.
However, the proposed Hong Kong fund would face practical challenges, including liquidity in its underlying securities, foreign-investor accessibility, market-making arrangements and currency exposure.
Its success would depend on more than obtaining a listing.
Saudi Arabia Sets a Precedent for Oman's Hong Kong ETF Plans
Oman's proposed ETF follows a cross-border investment model already established between Saudi Arabia and China.
In November 2023, CSOP Asset Management launched the CSOP Saudi Arabia ETF (2830.HK) in Hong Kong, providing Asian investors with exposure to Saudi equities. The initiative expanded in July 2024, when two ETFs listed in Shanghai and Shenzhen began offering mainland Chinese investors access to Saudi stocks through the Hong Kong fund.
Investment flows also developed in the opposite direction. In October 2024, Albilad Capital partnered with CSOP to launch the Albilad CSOP MSCI Hong Kong China Equity ETF (9410) on the Saudi Exchange, providing Saudi investors with exposure to Hong Kong-listed Chinese equities.
For Oman, the Jabal–E Fund initiative could establish a similar investment corridor between the GCC and Asia. Its proposed 50% allocation to Omani equities would give the Muscat Stock Exchange greater international visibility, although the fund has yet to receive a confirmed launch date.
What Comes Next for the Proposed ETF?
Jabal has not yet disclosed the proposed fund's assets under management, expense ratio, benchmark, ticker or launch timetable. It has also not confirmed whether the necessary regulatory approvals have been obtained.
These details will determine how the fund is positioned, which investors can access it and whether its structure can attract sustained demand.
For Oman, the broader opportunity is clear: a Hong Kong-listed ETF could provide an additional channel for overseas investment into domestic equities at a time when the Muscat Stock Exchange is seeking greater international recognition.
The next milestone will be turning the proposed allocation into an approved, tradable product capable of attracting meaningful investment from Asian markets.
