ABU DHABI, Dec. 16 -- The Capital Market Authority of Oman has issued a license for the establishment of an investment stability fund worth 150 million rials (390 million U.S. dollars) in a bid to stabilize the country's declining stock market, Oman Daily Observer reported on Tuesday.

The fund will have 60 percent government holdings, and the remaining 40 percent will be distributed to pension funds and the private sector, represented by banks, investment companies and the companies operating in securities, Minister of Commerce and Industry Maqbool bin Ali Sultan was quoted as saying.

"The fund is an open end investment fund with indefinite term that would contribute to restoring confidence in the local market in view of the global financial situation and the resulting downturn in the Muscat Securities Market (MSM) index due to psychological reasons emanating from the global financial crises," he added.

The main purposes of the fund include boosting liquidity and enhancing investment professionalism in the market as well as other investment objectives that bring stability to Oman's securities market, the minister said.

The MSM 30 Index, the benchmark index of Oman's Muscat Securities Market, closed at 5,965.60 on Monday, down 50.96 percent from the year's highest point of 12,164.54 on June 12.