Market Overview
Oman’s sukuk market has expanded significantly, with total outstanding issuances reaching OMR 4.2 billion by end-2024. The government has established itself as a regular sovereign sukuk issuer, while corporate issuances have grown from a low base as Sharia-compliant financing demand increases.
The Central Bank of Oman has developed comprehensive sukuk regulations, and the Capital Market Authority has streamlined the issuance approval process.
Opportunity Assessment
Sovereign sukuk offer competitive yields with implicit government backing. Green sukuk represent an emerging hybrid instrument combining Islamic finance with ESG objectives. Corporate sukuk from banking and real estate sectors provide diversified fixed-income exposure.
| Metric | Value |
|---|---|
| Sukuk outstanding | OMR 4.2 billion |
| Sovereign sukuk share | 65% |
| Average sukuk yield | 5.2-6.8% |
| New issuances (2024) | OMR 1.1 billion |
| Green sukuk pipeline | OMR 500 million |
| Average tenor | 5-7 years |
Risk Factors
Secondary market liquidity for Omani sukuk is limited. Sharia compliance structuring adds complexity and cost versus conventional bonds. Cross-border sukuk recognition varies by jurisdiction.
Entry Strategy
Primary market subscription through lead arrangers offers optimal pricing. Omani Islamic banks provide secondary market access. Portfolio construction should blend sovereign and corporate sukuk for yield optimisation.
Vision 2040 Alignment
Sukuk market development supports Vision 2040’s capital market deepening objectives and Islamic finance growth targets, while green sukuk directly finance national sustainability initiatives.