Oman’s Financial Services Authority (FSA) has launched a trial of the Rushd robo-advisory platform, allowing the digital investment service to operate within a supervised regulatory environment as the country expands the use of financial technology in its capital markets.

The trial is being conducted through the FSA’s Fintech Regulatory Sandbox, which allows financial service providers to test new products and business models under regulatory supervision before seeking approval for wider commercial operations.

Rushd has completed the necessary registration and preliminary approval requirements to enter the testing phase. The platform will remain under the authority's supervision until it meets the technical, operational and regulatory conditions required to obtain a full licence.

Rushd to Offer Sharia-Compliant Investment Services

The Rushd platform uses automated investment tools to provide portfolio recommendations based on customers' financial circumstances, investment objectives and willingness to accept risk.

The service assesses factors including investment goals, asset values and risk tolerance before recommending portfolios suited to individual customers.

Alongside investment advice, Rushd is designed to provide portfolio management services covering local and international investment products.

These services include asset allocation, portfolio monitoring and periodic adjustments to maintain the intended investment strategy.

All investment portfolios and products offered through the platform will follow Islamic Sharia principles.

The FSA intends to assess whether the service can provide suitable investment recommendations while meeting the standards expected of regulated investment advisers and portfolio managers.

FSA Sets Limits on Customers and Transactions

The trial will take place in several stages, with each stage subject to regulatory requirements and performance assessments.

The authority has introduced restrictions on the number of customers and the volume of transactions permitted during testing.

These controls will allow the regulator to examine Rushd's operations before considering whether the platform can serve a larger customer base.

The assessment will cover technical performance, operational readiness, risk management, investment suitability and customer experience.

The FSA will also monitor transaction activity, identify operational weaknesses and require improvements where necessary.

Each stage will be assessed against defined performance indicators, providing the regulator with evidence of the platform's ability to meet its licensing and operating requirements.

The trial does not constitute final authorisation for unrestricted public services. Rushd must secure the necessary approvals before progressing beyond the sandbox.

Oman Encourages More Fintech Firms to Enter Regulatory Sandbox

Abdullah bin Salim Al Rubaie, Director General of the Institutional Development Unit at the FSA, said the inclusion of Rushd in the regulatory sandbox forms part of the authority's efforts to develop digital investment advisory services in Oman.

He said the initiative supports the country's National Fintech Strategy and the wider use of technology across financial products and capital market services.

Al Rubaie also encouraged entrepreneurs, startups and technology companies operating in non-banking financial services to submit proposals for testing within the sandbox.

The regulator is seeking projects that address market requirements while meeting standards for customer protection, reliability and sustainable operations.

Through the programme, companies can examine the commercial and technical performance of their products within defined regulatory boundaries.

Digital Investment Services Gain Regulatory Attention

The Rushd trial comes as Oman seeks to develop its financial technology sector and encourage new forms of participation in its capital markets.

Automated investment platforms offer an alternative to traditional advisory services by using software to assess investor requirements, recommend portfolios and manage asset allocations.

However, these services also raise questions about investment suitability, risk controls and the reliability of automated recommendations.

The FSA's supervised testing process is intended to examine those issues before services become more widely available.

For Oman’s investment industry, the trial could establish a practical route for introducing digital advisory products within the country's existing financial regulatory framework.

The next stage will depend on Rushd's performance during testing and its ability to satisfy the FSA's requirements for licensing, investor protection and operational reliability.