Transitioning from Debt to Equity: An Empirical Analysis of the MSX-AIM’s Impact on SME Growth and Oman’s Economic Diversification
This study evaluates the Muscat Stock Exchange’s Alternative Investment Market (MSX-AIM) as a strategic vehicle for addressing SME financing gaps and supporting the non-hydrocarbon goals of Oman Vision 2040. Utilizing a mixed-methods approach, the research employs a Difference-in-Differences (DiD) regression model to isolate the “listing effect” on SME performance metrics. The study compares a treatment group of MSX-AIM listed firms against a matched sample of non-listed peers using Propensity Score Matching (PSM) to mitigate self-selection bias. Empirical results indicate that listed SMEs achieved an average revenue growth of 18.5% and a 12% increase in high-skill employment within the first-year post-listing, significantly outperforming the control group. The study also validates the SME Financing Resilience Framework (SFRF), highlighting that effective 10% tax rate and government tender price preferences are critical catalysts for market entry. The paper introduces the SFRF model and provides a unique “Omani Model” blueprint for emerging economies to decouple SME growth from oil price volatility through targeted regulatory incentives and alternative equity boards. While challenges in market depth and information asymmetry remain, the findings suggest that the MSX-AIM represents a vital structural evolution in Oman’s financial ecosystem.
Keywords: Muscat stock exchange MSX-AIM; SME Financing; Oman Vision 2040; Alternative Investment Markets; Equity Financing; Economic Diversification; Difference-in-Differences (DiD); Capital Market Incentives Program (CMIP).
