Period: Q1 2025 (January-March)
Market Performance Summary
| Indicator | Value |
|---|---|
| MSX 30 Index performance | +2.8% |
| Average oil price | $76.20/barrel |
| GDP tracker | Q1 GDP growth tracking at 2.9% year-on-year |
| OMR/USD peg | Stable at 0.385 |
| Inflation rate | 1.2-1.8% |
| Interbank rate | 5.2-5.5% |
Quarter Highlights
New privatisation tranche announced, green bond oversubscribed 3.5x, Sohar Free Zone expansion approval.
Equity Market Review
The Muscat Securities Market recorded +2.8% total return during Q1 2025 (January-March). Trading volumes averaged OMR 11-13 million daily, with institutional activity driving price discovery in large-cap names. Sectoral performance was led by financials and industrials, while utilities provided stable dividend income.
Foreign investor participation remained steady, with net flows reflecting continued interest in Oman’s valuation discount to GCC peers. IPO market activity supported broader market engagement and liquidity improvement.
Fixed Income Review
Omani sovereign Eurobonds traded within a tight range, with spreads reflecting stable credit fundamentals. Domestic sukuk and bond issuances saw strong demand from local institutional investors. The government’s fiscal position continued to benefit from disciplined expenditure management and above-budget oil revenues.
Sector Developments
Key sectoral developments during the quarter included progress across the privatisation pipeline, infrastructure project milestones, and regulatory reforms supporting foreign investment. The non-oil economy continued to demonstrate resilience, with tourism, manufacturing, and logistics sectors recording positive growth.
Outlook
Constructive outlook with privatisation momentum and infrastructure spending supporting market activity. Investors should monitor oil price trajectories, fiscal policy developments, and the privatisation calendar for near-term catalysts.