Muscat – The bond and sukuk market on the Muscat Stock Exchange (MSX) recorded robust gains of RO607.9mn in market capitalisation last year, rising to RO4.916bn by the end of 2025, compared with RO4.308bn at the end of 2024.
Bond and sukuk market capitalisation accounted for 15.3% of the MSX’s total market value, which stood at RO32bn at the end of 2025.
Bonds and sukuk provide investors with regular cash flows through coupon or profit payments, in addition to the return of principal at maturity. As a result, many funds, investment firms and individual investors are increasingly turning to these instruments to diversify risk across asset classes such as equities, bonds, sukuk and other securities.
The sultanate’s bond and sukuk market recorded positive performance across several indicators last year. The number of executed transactions rose by 2.9% to 2,742, the number of traded bond and sukuk issues increased from 39 to 41, and the volume of traded securities rose from 119.6mn to 124.6mn units. However, trading value declined by 18.3% to RO73.9mn, compared with RO90.5mn a year earlier.
A total of 70 bond and sukuk issues are currently listed on the MSX. Bank Muscat’s Tier 1 perpetual bonds lead the market in terms of value at RO321.2mn, followed by the eighth sovereign sukuk issue at RO285.8mn and the 67th government development bond issue at RO283.1mn.
Bank Muscat’s Tier 1 perpetual bonds also topped the list of the most actively traded issues by value, recording RO15.9mn and accounting for 21.6% of total trading value. The eighth sovereign sukuk issue ranked second with RO11.3mn, followed by BankDhofar’s 2022 bonds at RO7.3mn. Ahlibank’s mandatory convertible bonds issued in 2024 came fourth with RO3.9mn, while the 70th government development bond issue ranked fifth with RO3.5mn.
Prices rose for 20 bond and sukuk issues during the year. Ominvest’s 2024 mandatory convertible bonds recorded the highest increase of 25%, closing at 100bz. National Bank of Oman’s mandatory convertible bonds rose by 10.8% to 102bz.
Six issues registered price declines, led by Oman Finance Services’ 2025 bonds, which fell by 24% to 76bz. United Finance’s bonds declined by 23% to 77bz, while Oman Arab Bank’s 2024 mandatory convertible bonds dropped 18% to close at 901bz.
Bonds and sukuk are key instruments used by governments to fund development projects, manage public debt and finance budget deficits. Banks and large corporations also utilise them to manage liquidity, strengthen capital positions and support expansion plans.
During the year, the Government of the Sultanate of Oman issued several bonds and sukuk that were listed on the MSX. These included the eighth sovereign sukuk issuance valued at RO282mn with an annual profit rate of 4.8%, the ninth sovereign sukuk issuance valued at RO100mn with a profit rate of 4.65%, and seven government development bond issues totalling RO582.7mn, with interest rates ranging between 4.1% and 4.6%.
In the corporate segment, Sohar International issued RO200mn in unsecured Tier 1 perpetual and subordinated bonds through a private placement at an annual interest rate of 6.75%. The bonds were listed on the MSX on September 30.
The year 2025 also saw the listing of RO50mn in sukuk by Energy Development Oman, offering a profit rate of 4.4%, and RO6mn in sukuk by Takaful Oman Insurance Company with a profit rate of 6.75%. These new listings helped deepen the market and expanded investment options available to MSX investors.
