Oman’s MSX tops GCC markets in 2025 rally

MUSCAT, JAN 4

The Muscat Stock Exchange (MSX) closed 2025 as the clear outperformer among Gulf equity markets, capping a year marked by strong gains, rising liquidity and a broad-based recovery across sectors. Oman’s benchmark index delivered a standout performance at a time when regional markets showed sharply divergent trajectories, underlining the MSX’s re-emergence as a preferred destination for investors seeking growth and value.

According to Vision Capital and Kamco Invest, Oman ranked as the best-performing stock market in the GCC in 2025, significantly outpacing its regional peers. While the MSX 30 Index surged by 28.2 per cent for the year, most other Gulf markets posted far more modest gains and one major market ended the year in negative territory.

The performance gap was stark. Saudi Arabia’s equity market recorded a year-to-date decline of 12.8 per cent, making it the weakest performer in the GCC in 2025. Abu Dhabi’s market posted a gain of 6.1 per cent, while Dubai advanced by 17.2 per cent, supported by selective strength in real estate and services-linked stocks. Qatar saw only a marginal increase of 1.8 per cent over the year, Bahrain rose by 4.1 per cent and Kuwait emerged as the second-best performer in the region with a gain of 21.2 per cent, though still well below Oman’s pace.

Against this regional backdrop, the MSX’s rally appears even more pronounced. The index followed a modest gain of just 1.4 per cent in 2024 with a sharp acceleration in 2025, reaching its highest level since May 2016 on December 12. Although the market eased slightly towards the end of the year, it closed at 5,866.8 points, firmly consolidating its position as the GCC’s top-performing exchange.

Market volatility earlier in the year makes the recovery all the more notable. The MSX 30 Index fell to a low of 4,223.83 points in early April 2025 before rebounding strongly to reach an annual peak of 5,985.66 points in mid-December. This represents a recovery of nearly 39 per cent from the year’s trough, reflecting sustained buying interest and a decisive improvement in investor sentiment.

Sector-level data confirms that the rally was not confined to a narrow segment of the market. All three main sectors on the MSX ended the year in positive territory. The Industrial Sector led the advance, surging by 48.9 per cent to close at 7,846.45 points, supported by strong gains in manufacturing, utilities and energy-related stocks. The Services Sector followed with a rise of 38.0 per cent, ending the year at 2,405.16 points, while the Financial Sector gained 28.3 per cent to close at 9,908.9 points, reflecting renewed strength in banking shares.

Individual stock performance was equally striking. National Aluminium Products topped the gainers’ list after its share price surged by 175 per cent during the year. Phoenix Power and Voltamp Energy also posted exceptional gains of 167.2 per cent and 157.8 per cent, respectively. On the downside, Financial Services Company recorded the steepest decline, with its share price falling by 63.1 per cent, followed by Barka Water and Power and Oman Chlorine, which declined by 44.7 per cent and 43.2 per cent.

Trading activity on the MSX expanded sharply in tandem with the market rally. The total value of shares traded jumped to RO 5.0 billion in 2025, compared to RO 1.2 billion a year earlier. Trading volumes also rose significantly, with 25.1 billion shares exchanged during the year, up from 6.4 billion shares in 2024.

Bank Muscat led the market in terms of value traded, with RO 888.4 million worth of shares changing hands. Sohar International Bank and OQ Base Industries followed, while Sohar International Bank topped the volume chart with nearly 5.2 billion shares traded. Together, these trends underline how Oman’s equity market not only outperformed the GCC in returns, but also regained depth and liquidity, setting a strong base heading into 2026.