OIA’s Strategic Push Yields Results,
Elevating MSX’s International Profile
Muscat, 29 Oct (ONA) — In
continuation of its integrated strategies introduced to revitalize the Muscat
Stock Exchange (MSX) and advance the capital market of the Sultanate of Oman, Oman
Investment Authority (OIA) has implemented a series of programs 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 capitalization 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 Securities
Market into a Closed Omani Joint Stock Company wholly owned by OIA. The move
laid the groundwork for taking clear and direct measures, such as injecting
liquidity, launching IPO programs, 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 capitalization 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 Chairman
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, commented: “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 Program 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 revitalized 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 capitalization 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 program 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 stabilize 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
capitalization, 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 (FSA) 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 Program 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 capitalization, 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.
— Ends/Khalid
