MUSCAT: In continuation of its integrated strategies introduced to revitalise the Muscat Stock Exchange (MSX) and advance the capital market of Oman, Oman Investment Authority (OIA) has implemented a series of programmes aimed at increasing listings, boosting liquidity and enhancing market infrastructure.

The MSX index has successfully surpassed the 5,000-point barrier for the first time in nearly eight years, as annual trading volume grew by 5 times, from RO 645 million in 2021 to over RO 3.25 billion during the first ten months of 2025. Meanwhile, the market capitalisation has increased by 51% from RO 20.24 billion in 2020, reaching RO 30.53 billion in October 2025, which reflects the effectiveness of OIA’s measures to reinforce MSX’s position as a regional financial and investment hub in line with the objectives of Oman Vision 2040.

This robust growth follows the promulgation of Royal Decree No 5/2021 on transforming Muscat Stock Exchange into a Closed Omani Joint Stock Company wholly owned by OIA. This laid the groundwork for taking clear and direct measures, such as injecting liquidity, launching IPO programmes, establishing institutional liquidity platforms and implementing local asset management plans. As a result of these positive interventions, trading volumes rose to unprecedented levels. In addition, the market capitalisation increased significantly, reflecting the tangible impact of OIA’s responsible efforts to strengthen MSX’s position and enhance investor confidence.

Mulham bin Basheer al Jarf, Deputy President for Investments at OIA, noted that the transformation witnessed by Muscat Stock Exchange reflects OIA’s ambitious vision to establish an efficient and attractive capital market that enhances economic growth and attracts quality investments. Al Jarf added: “Since its inception, OIA aimed to turn MSX into a high-performing, investor-friendly exchange and a key investment enabler for the Omani economy. To achieve this, we adopted a phased plan, starting with reinforcing trust, enhancing liquidity and broadening ownership and ending with building a flexible and effective institutional system that applies the global best practices and aligns with Oman Vision 2040 goal of a diversified and sustainable economy”.

Aown Abbas al Bahrani, Chief Investment Officer — Public Markets at OIA, highlights: “Today, the Muscat Stock Exchange stands as a clear example of the tangible outcomes of effective and well-planned strategies. Since 2022, it has grown by 67 per cent, with an average annual increase of 14.6 per cent — outperforming major global indices such as the S&P 500 and the MSCI indices for GCC, global, emerging and Chinese markets. This success reflects a clear vision to enhance market liquidity, diversify the investor base and expand listing opportunities, enabling MSX to deliver returns that surpass regional and international benchmarks and strengthen its position as a leading investment destination both locally and regionally”.

Since 2022, OIA has launched an ambitious IPO Programme that contributed to MSX’s transformation, starting with the listing of the Pearl REIF, Oman's largest real-estate fund, which raised over RO 35 million. The fund aims to invest in a diversified portfolio of real estate assets and deliver regular returns for investors; offering a new investment product that enables investors to diversify their financial instruments. In March 2023, Abraj Energy Services, Oman's largest drilling and oilfield services company, was listed on MSX, raising approximately RO 94 million, making it the largest IPO in the market since 2010. From day one, Abraj shares accounted for nearly 90 per cent of total market turnover (around RO 7.14 million), boosting liquidity and reviving trading activity. Such high demand strengthened investor confidence in both the offering and the financial position of Abraj and revitalised investment in the oil and gas services sector.

In October 2023, OQGN was listed on MSX, marking the largest-ever initial public offering in Oman at that time, with total demand exceeding RO 4 billion against an offering volume of RO 288 million. As the exclusive operator of Oman's natural gas transmission network, OQGN plays a vital role in supplying natural gas to industrial clusters and power plants. Its IPO, therefore, attracted key regional and international institutional investors, including three anchor investors: Fluxys Belgium, an investment firm owned by the Public Investment Fund of Saudi Arabia, and an investment firm owned by the Qatar Investment Authority. This reflects robust foreign investor appetite and strong regional and global confidence in the Omani market. The number of investors grew significantly in the fourth quarter of 2023, with total annual trading value reaching RO 1.132 billion. In addition, the transactions carried out increased by 37 per cent compared to the previous year.

MSX’s upward trend continued in October 2024 with the listing of OQEP, OQ’s upstream arm operating in oil and gas exploration and production. The IPO, described as Oman’s largest to date, attracted total gross demand exceeding RO 780 million, indicating strong investor confidence both locally and internationally. As a result of this IPO, the total subscription proceeds amounted to RO 961 million for 2024. Moreover, this listing marked the first entry of oil exploration and production sector into MSX and increased the company’s market capitalisation to over RO 3 billion at the time of listing.

Haitham al Salmi, Chief Executive Officer of the Muscat Stock Exchange, said: “OIA’s strategic vision has been instrumental in transforming MSX’s performance through a well-structured listing programme and institutional initiatives that enhanced market liquidity and investor confidence. MSX has effectively translated these directions into tangible and clear actions, including developing the regulatory framework, improving transparency and increasing trading efficiency. Recently, MSX successfully boosted market liquidity through development-focused reforms that improved trading operations and deepened the market. The activation of the market maker role has helped stabilise prices and reduce bid-ask spreads, contributing significantly to increased investor confidence. Simultaneously, the participation of liquidity providers ensured continuous capital flows and improved pricing quality, factors that have enhanced the attractiveness of the market and positioned it for sustained growth and broader capital inflows. These efforts are now reflected in rising trading volumes, higher market capitalisation and a broader base of local and international investors, affirming MSX’s position as a key driver of investment and economic growth in Oman”.

In December 2024, OQBI, the company responsible for petrochemical and refining industries within the OQ Group, further diversified the market with a listing that raised approximately RO 188 million. While the share price experienced short post-listing fluctuations, the IPO underscored sustained investor appetite for industrial offerings, with the share later trading above its offer price. In March 2025, OIA announced the listing of ASYAD Shipping, the maritime arm of Asyad Group and one of the region’s largest fleet operators. The offering raised RO 128 million, marking the entry of the maritime and logistics sector to MSX, a key pillar of Oman Vision 2040 and one of Oman’s most promising growth sectors.

To build on the momentum created by these listings, OIA launched Tanmia Liquidity Fund in May 2024, with an initial value of RO 50 million, which subsequently doubled to RO 100 million in March 2025 and then to RO 150 million in August 2025. Established as a 50/50 joint investment between OIA and the Social Protection Fund and managed by three leading Omani financial institutions — Tanmia, United Securities LLC and Ubhar Capital — the fund aims to support market stability and enhance trading by coordinating the efforts of key institutional investors, thereby reinforcing investor confidence and creating a more sustainable trading environment.

MSX’s remarkable growth reflects the coordinated efforts of key capital market stakeholders alongside OIA. The Financial Services Authority has played a pivotal regulatory role, while the Social Protection Fund, Tanmia, United Securities, Ubhar Capital and brokerage firms have been instrumental in facilitating trading and expanding the investor base. Local and institutional investors, including Ahli Bank as one of the earliest supporters, have contributed to increasing market depth and liquidity. The National Programme for Fiscal Sustainability and Financial Sector Development (Estidamah) has further strengthened the market by supporting the listing of companies with clear economic and sustainability impact, thus enhancing market diversity. Additionally, Tanmia’s role in creating a conducive environment for major company listings has been key in enabling this progress.

Since 2021, MSX has undergone a profound transformation; one that reinforced its position among the region’s most successful markets. Oman has thus reached new levels of liquidity and listings, emerging as a dynamic, multi-sector financial platform with record trading volumes and a doubled market capitalisation, attracting both local and international capital. This national journey reflects OIA’s commitment to transforming challenges into opportunities and empowering Omani citizens to become active partners in the ownership of national assets, in line with the long-term objectives of Oman Vision 2040 which considers the capital market as a key driver of sustainable economic growth.

Today, as MSX progresses steadily, continuing its development journey. It has evolved into a platform of opportunities, a catalyst for development and a driver of tangible economic impact. Yet, this marks only the beginning of a broader journey, one propelled by stronger ambition and deeper confidence in MSX’s capabilities and growing significance within the national economy.

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