(MENAFN- Muscat Daily) Oman's capital market contributed to financing economically feasible projects worth nearly RO907mn in 2014.

This reflects the ability of the sector to provide the required liquidity for projects of different sizes. 

Data from the Capital Market Authority (CMA) indicate the sector can provide for the same amount of financing as banking or even higher as has been the case in 2012 and 2013. 

According to the Authority's annual report for 2014 Oman's capital market grew by three per cent to RO14.56bn last year compared with RO14.16bn in 2013. 

The report points out that the size of the sultanate's capital market at the end of 2014 did not represent its potential with the decline in oil prices impacting market performance in the last quarter of 2014. 

The market was worth about RO15.61bn at the end of the third quarter of 2014 compared with RO13.46bn a year earlier; a growth by 15 per cent. 

Thus despite the effects of the decline in oil prices on the performance of the sector it still plays an important role in its contribution to the growth of the economy. The sector accounts for 30 per cent of the Oman's GDP. 

The Muscat Securities Market hosted four initial public offerings (IPOs) last year worth RO74.76mn which reflects the good liquidity position in the market and the ability of the sector to finance major projects. 

The dividends distributed by public joint stock companies stood at about RO450.18mn of which 92 per cent was cash dividends and the remainder stock dividends or convertible bonds. These dividends added to the returns for shareholders. 

The value of dividends was five per cent of the total value of all listed companies and 55 per cent of the unaudited gross net annual profits for 2014.