MUSCAT: The market capitalisation of 35 Sharia-compliant companies on the Muscat Stock Exchange (MSX) has reached around RO 8 billion, accounting for about 52 per cent of the relevant market universe, as Oman expands Islamic investment and financing options, MSX Chief Executive Officer Haitham al Salmi said.
Speaking at the IFN Oman Forum 2026, Al Salmi said the exchange has been working to widen the range of investment products available to Sharia-conscious investors, complementing the development of Islamic banking and sukuk markets in the Sultanate of Oman.
The MSX Sharia Index, comprising the top 15 eligible companies, has a market capitalisation of around RO 7.12 billion, he said.
MSX works with IdealRatings to assess listed companies against Sharia requirements, including standards set by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
Al Salmi said Sharia compliance has also become an increasingly important consideration for companies entering the exchange through initial public offerings, as issuers seek access to a broader pool of local and international investors.
Abraj Energy Services, one of the first companies in Oman’s recent wave of state-backed IPOs, became Sharia-compliant after its listing, while subsequent offerings have increasingly incorporated Sharia compliance.
OQ Exploration and Production (OQEP), which carried out Oman’s largest IPO, was also Sharia-compliant, Al Salmi said.
The exchange also hosts around RO 1.5 billion worth of listed sukuk, providing investors with Islamic debt instruments alongside Sharia-compliant equities.
Al Salmi said MSX was working to complete the investment ecosystem by introducing services aimed specifically at Islamic investors. These include a purification rate that enables investors to determine amounts requiring purification from their investments.
The exchange has also introduced a Zakat platform among its 2026 initiatives, allowing investors to calculate Zakat on their holdings.
Oman’s Islamic capital market has developed alongside the country’s Islamic banking industry. The first sovereign sukuk was issued in 2015, followed by the first US dollar-denominated sovereign sukuk in 2016. Bank Nizwa subsequently issued the first sukuk by an Omani Islamic bank in 2017, while retail investors were given access to a sovereign sukuk offering in 2020.
Al Salmi said the expansion of Sharia-compliant products was taking place alongside broader growth in Oman’s capital market.
The market’s size has risen to around 39 per cent of Oman’s gross domestic product from about 20 per cent previously, while trading liquidity has increased sharply.
Average daily traded value has climbed from around RO 1.8 million based on the 2020 baseline to more than RO 55 million currently, representing an increase of roughly 30 times, according to Al Salmi.
“The liquidity has been enhanced,” he said, adding that the next step was to ensure investment products available on MSX cater to different classes of investors and match both local and global investment appetite.
MSX, formerly the Muscat Securities Market, was transformed into a commercial company and rebranded in 2021 as part of efforts to deepen Oman’s capital market and provide an exit platform for state-owned and private companies.
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