Saturday 24 / January / 2026
Muscat: The total value of Oman’s bond and sukuk market rose by OMR607.9 million to OMR4.91 billion by the end of trading in 2025, compared to OMR4.30 billion at the end of 2024.
The bond and sukuk market is one of the available investment options on the Muscat Stock Exchange, and its market value constituted 15.3 percent of the total market value of the exchange, which concluded trading last year at OMR32 billion.
Bonds and sukuk provide regular periodic cash flows to investors through the profits they pay periodically, along with receiving the nominal value of the bonds or sukuk at the end of the maturity period. Many funds, investment companies, and individuals are turning to buying bonds and sukuk to distribute investment risks in the stock market among stocks, bonds, sukuk, and other securities.
The bond and sukuk market witnessed a positive performance in a number of its indicators last year, as the number of transactions executed increased by 2.9 percent to reach 2,742. The number of traded bond and sukuk issues increased from 39 to 41 issues and the number of traded securities increased from 119.6 million to 124.6 million securities. However, the value of trading declined from OMR90.5 million to OMR73.9 million, registering a drop of 18.3 percent.
The total number of bond and sukuk issues listed on the Muscat Stock Exchange is 70. Bank Muscat’s Tier 1 perpetual bonds lead the listed issues in terms of market value at OMR321.2 million, followed by the eighth issue of sovereign sukuk in second place at OMR285.8 million, and the 67th issue of government development bonds (GDBs) in third place at OMR283.1 million.
Bank Muscat’s Tier 1 perpetual bonds topped the list of most traded issues in terms of trading value at OMR15.9 million, accounting for 21.6 percent of the total trading value. The eighth issue of sovereign sukuk came next at OMR11.3 million, Bank Dhofar’s bonds issue of 2022 came in third place at OMR7.3 million, Ahli Bank’s mandatory convertible bonds issue of 2024 came in fourth place at OMR3.9 million, and the 70th issue of government development bonds came in fifth place at OMR3.5 million.
Last year saw a rise in the prices of 20 issues, most notably Ominvest’s mandatory convertible bonds issued in 2024, which recorded a rise of 25 percent and closed at 100 baisa. Ahli Bank’s mandatory convertible bonds came in second place, rising by 10.8 percent and closing at 102 baisa. Oman Finance’s free bonds issued in 2022 rose to 86 baisa, an increase of 7.5 percent.
The number of issues whose prices declined last year reached 6 issues; among them were Oman Finance Services Bonds 2025, which declined by 24 percent and closed at 76 baisa, United Finance Bonds declined by 23 percent and closed at 77 baisa, and Oman Arab Bank Mandatory Conversion Bonds 2024 fell by 18 percent and closed at 901 baisa.
Bonds and sukuk are investment tools used by governments to provide liquidity for development or capital projects, control public debt, and finance budget deficits. Banks and large companies also use them to manage liquidity, strengthen their financial positions, and expand projects.
Last year, the government of the Sultanate of Oman issued a number of bonds and sukuk that were listed on the Muscat Stock Exchange, including the eighth issuance of sovereign sukuk with a value of OMR282 million and an annual profit rate of 4.8 percent, and the ninth issuance of sovereign sukuk with a value of OMR100 million with an annual profit rate of 4.65 percent. Seven issuances of government development bonds were also issued with a total value of OMR582.7 million at an interest rate ranging between 4.1 percent and 4.6 percent.
During 2025, Bank Sohar International issued unsecured Tier 1 perpetual and subordinated bonds in a private placement worth OMR200 million with an annual interest rate of 6.75 percent, and they were listed on the Muscat Stock Exchange on September 30th. The Oman Finance Services Company issued free unsecured bonds redeemable after 5 years from the date of issuance and not convertible into shares, with a value of OMR1.577 million and an annual interest rate of 5 percent. The National Mineral Water Company issued unsecured subordinated bonds redeemable after 7 years with a value of OMR4 million and an annual interest rate of 8 percent.
The year 2025 also saw the listing of Oman Energy Development Company’s sukuk of OMR50 million at an annual profit rate of 4.4 percent, and the listing of Oman Takaful Insurance Company’s sukuk of OMR6 million with a profit rate of 6.75 percent. The new issuances contributed to increasing the depth of the market and providing more options for investors on the Muscat Stock Exchange.
