Muscat – Oman’s Muscat Stock Exchange (MSX) emerged as the best-performing equity market in the Gulf and one of the strongest globally in 2025, delivering a robust annual gain of 28.2% despite a year marked by geopolitical uncertainty, trade tensions and weak oil prices that weighed heavily on regional markets.
While GCC equity markets broadly lagged the global rally – with the aggregate MSCI GCC Index rising by just 1.6% in 2025 – Oman stood out decisively. The MSX recorded the largest gain in the GCC, comfortably outperforming Kuwait (21.0%) and Dubai (17.2%), while markets in Abu Dhabi, Qatar and Bahrain posted only low- to mid-single-digit advances.
Saudi Arabia was the only GCC market to end the year in negative territory, declining by 12.8%, largely due to investor concerns over falling oil prices and heightened regional geopolitical risks, according to a Kamco Investment report. The report also noted that crude oil weakness was a key drag on GCC markets overall, with Brent crude sliding 18.5% during the year amid oversupply concerns.
Against this backdrop, the MSX 30 Index closed 2025 at 5,866.8 points, marking one of the strongest annual performances globally. The index touched its highest level since May 2016 in mid-December and rebounded nearly 39% from its early-April low of 4,223.83 points, highlighting the depth of the market’s recovery and renewed investor confidence.
The rally on the Omani bourse was broad-based, with all three main sector indices ending the year firmly higher. The Industrial Index led gains, surging 48.9%, supported by strong performances in manufacturing and energy-related stocks. The Services Index climbed 38.0%, while the Financial Index advanced 28.3%.
On Sunday, the main index of the Muscat Stock Exchange gained 0.74% to close at 5,939.384 points, the highest level in nearly 10 years.
Liquidity surges to record levels
The MSX’s strong market performance was accompanied by a sharp revival in trading activity, signalling a significant improvement in market depth and participation. According to Kamco Investment, the total value traded on the MSX jumped 325.9% to RO5bn in 2025, compared with RO1.2bn in 2024, while trading volumes surged 291.6% to 25.1bn shares from 6.4bn a year earlier.
Bank Muscat led the market by value traded, with RO888.4mn worth of shares changing hands, followed by Sohar International Bank at RO775.5mn and OQ Base Industries at RO731.4mn.
Average daily trading value exceeded RO20mn during 2025, reflecting an expanding investor base and the increasingly effective role of market makers and liquidity providers.
Overall, the exchange added 1,290 points during 2025, supported by improved liquidity, strong participation from local funds and institutions, growth in industrial and energy sectors, and solid earnings from leading listed companies.
The MSX’s exceptional performance was underpinned by Oman’s strengthening economic and fiscal fundamentals. During 2025, the sultanate secured two sovereign rating upgrades, restoring its investment-grade status across all three major international rating agencies.
As regional markets struggled amid weak oil prices, Oman’s equity market defied the trend, positioning the MSX as a standout performer in the GCC and an increasingly attractive destination for regional and global investors.
Market-cap surges to RO32.2bn
In its 2026 budget statement released on Thursday, the Ministry of Finance said the MSX’s strong performance in 2025 reflected the resilience of the national economy and the success of government initiatives aimed at enhancing market efficiency and boosting investment appeal.
The ministry noted that the MSX’s market capitalisation rose to RO32.2bn at the end of 2025, representing growth of more than 59% since 2020. ‘This expansion was driven by initiatives such as the Capital Market Development Programme, the Promising Companies Market and legislative reforms that have enhanced liquidity and strengthened investor confidence, broadening the exchange’s capacity to attract new listings and offer diversified investment opportunities,’ the ministry said.
‘In 2025, the MSX index surpassed several key benchmarks, emerging as the Gulf region’s top-performing market and the fourth globally in terms of growth rate,’ the Ministry of Finance said. ‘This performance reflects Oman’s stable economic conditions and flexible fiscal policies, which have reinforced investor confidence in the country’s medium- and long-term economic outlook,’ it added.
