MSX30 Rally ‘Nothing Short of Historic’: What Omani Investors Need to Know for Strategic Growth
MUSCAT: Oman’s benchmark MSX30 index surged by 2.13 percent on Thursday, closing at 7,177.57 points. This extended a strong rally that has pushed the market to its highest level in over a decade, sparking renewed discussions about whether the surge is supported by fundamentals or indicative of market overheating.
An official market report revealed that trading value increased by 19.4 percent to RO 98.13 million, up from RO 82.17 million in the previous session. Market capitalization grew by 1.375 percent, reaching approximately RO 35.75 billion.
The index has risen nearly 20 percent since the start of the year and climbed over 9 percent since Sunday, according to Bloomberg data.
Economist Azza al Habsi of Ominvest described the recent rally as “nothing short of historic,” noting the rapid rise from 6,000 to 7,000 points in just one month. She highlighted that the market followed a 28 percent gain in 2025 and has increased by 22 percent year-to-date as of February 13.
Last year, the Muscat Stock Exchange’s 28.2 percent gain made it the best-performing equity market in the GCC, according to regional reports.
Al Habsi acknowledged concerns about potential bubble-like gains but argued the rally is largely supported by strong fundamentals, citing improved profitability among listed companies, robust earnings and dividend payouts, increased liquidity, market-making activities, a resurgence of local retail investors, and a gradual inflow of foreign capital.
She also emphasized the exchange’s ongoing digital enhancements — including upgraded trading infrastructure, new indices, and improved post-trade services — as well as a stronger IPO pipeline, which have collectively deepened the market.
Looking beyond corporate factors, investors are closely monitoring structural developments. Oman regained investment-grade status when Fitch Ratings upgraded the sovereign to BBB- with a stable outlook on December 8, 2025, a decision widely seen as encouraging broader foreign investment in Omani assets.
Another key focus is the market’s long-term goal to transition from frontier to emerging market status with global index providers. Traders suggest that achieving and maintaining liquidity and investability thresholds in major stocks such as Bank Muscat and OQ Exploration and Production SAOG could attract increased institutional interest. Investors are also keeping an eye on corporate activities involving Sohar International Bank.
However, Al Habsi warned that some fear of missing out (FOMO) might be influencing market behavior. She noted that any correction driven by profit-taking rather than declining earnings could be healthy but stressed that her remarks do not constitute investment advice.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s MSX30 rally, driven by strong corporate earnings, improved liquidity, and sovereign credit upgrades, represents a unique opportunity for businesses to leverage heightened investor confidence and capital inflows. However, the rapid gains also introduce risks of market froth and potential corrections, urging smart investors and entrepreneurs to focus on fundamental value and structural reforms supporting a transition to emerging market status. Strategic participation in key sectors and upcoming IPOs could position stakeholders advantageously in this evolving landscape.
