The Muscat Stock Exchange (MSX) delivered a strong performance in 2025 compared with a number of Arab and international stock markets. The MSX30 Index rose by approximately 28.2%, representing the strongest performance among Gulf Cooperation Council (GCC) stock markets. Dividend yields also reached 5.2% in 2025, a level described in data issued by the Union of Arab Securities Authorities as the highest among Arab stock exchanges.
During the first nine months of 2026, the market maintained its strong momentum, with the MSX30 Index closing at around 7,567 points at the end of September, representing an increase of approximately 29%. Market capitalisation also rose to around RO 39.23 billion ($101.9 billion) by the end of September.
This strong performance recently earned the Muscat Stock Exchange recognition as the Arab stock exchange with the highest dividend yield, reflecting its positive performance and growth across key market indicators. The MSX was honoured during the 2026 Annual Conference of the Union of Arab Stock Exchanges, recently hosted by the Abu Dhabi Securities Exchange.
According to the MSX, trading value exceeded RO 9 billion ($23.4 billion) from the beginning of the year through the end of September, representing growth of more than 300% compared with the corresponding period of 2025. Average daily trading value in 2026 also reached approximately RO 52 million, an increase of more than 150% over the 2025 average. These figures point to significant growth in market liquidity and investor activity.
The recognition from the Union of Arab Stock Exchanges also highlights the MSX's growing presence in Arab capital markets, alongside its efforts to enhance market efficiency, develop infrastructure, increase liquidity and broaden its investor base. These developments are strengthening the competitiveness of the Omani market and enhancing its regional and international standing.
The strength of the MSX, therefore, has not been limited to the rise in its benchmark index. Its appeal has also stemmed from a combination of share-price appreciation and relatively attractive dividend distributions. Despite the market's strong gains, it has continued to offer notable dividend yields compared with a number of regional markets.
For investors, this highlights the importance of total returns – the combination of capital appreciation and dividend income. Improved corporate earnings and greater market liquidity can further support investment returns and confidence.
The MSX has consequently maintained its strong position among GCC markets in terms of performance since the beginning of 2026. Successful stock-market investment, however, depends on several factors, including share-price appreciation, dividend distributions and adequate liquidity, particularly during periods of substantially increased trading activity.
It is equally important to recognise that strong performance by a stock exchange does not mean that all listed shares will rise. The performance of individual stocks depends on factors such as corporate earnings and dividend prospects, debt levels, business growth and price-to-earnings ratios, rather than simply movements in the overall market index.
Financial markets are also influenced by oil prices, global interest rates, domestic liquidity, foreign investment flows, geopolitical developments and broader economic conditions.
Listed companies therefore need to focus, as far as possible, on sustaining earnings growth and maintaining or increasing dividend distributions. Such fundamentals remain important to preserving investor confidence and strengthening companies' positions in an increasingly competitive capital-market environment.
Oman Observer is now on the WhatsApp channel. Click here
