Muscat – The total value of Oman’s bond and sukuk market reached RO4.98bn by the end of the third quarter of 2025, compared to RO4.308bn a year earlier, registering a year-on-year growth of approximately 15.6%.

The Financial Services Authority (FSA) continues its efforts to develop the bond and sukuk market in the sultanate by strengthening policies and regulatory frameworks for these financing instruments and by creating long-term lending tools linked to green and sustainable finance.

Bonds and sukuk represent safe investment instruments for a large segment of investors in the Omani capital market. Trading volume for bonds reached RO36.81mn by the end of the third quarter of this year on the Muscat Stock Exchange, while sukuk trading volume stood at RO15.42mn.

Within the regulatory framework, the development of this sector has been bolstered by the Bonds and Sukuk Issuance Regulations, which have established a comprehensive framework governing public and private issuances, ensuring transparency, investor protection and market confidence.

The regulations were designed to reinforce this trend by providing an updated framework that facilitates issuance processes and keeps pace with the evolution of debt instruments. They are also considered a flexible legislative framework that encourages innovation, given the diversity of financing products they encompass, both in terms of structure and purpose.

Among the most prominent of these instruments are green and sustainable bonds and sukuk, as well as endowment sukuk. Furthermore, the regulations allow for the creation of specialised bond or sukuk structures that address specific financing needs and are tailored to the requirements of both investors and issuing entities.

Data released by the Muscat Clearing and Depository Company revealed a clear trend in trading activity, with institutions recording higher transaction levels than individuals.

Institutional purchases reached approximately RO39.9mn, compared with RO12.3mn by individuals, while institutional sales amounted to RO46.6mn, compared with RO5.6mn by individuals. These figures reflect the significant role of institutions in stimulating trading and enhancing liquidity.

Omani investors lead trading activity

At the investor level, the data also show that Omani investors continued to lead trading activity. Omani purchases of securities reached RO43.6mn, compared with RO8.7mn by foreign investors. Omani sales amounted to RO43.9mn, compared with RO8.3mn by foreign investors.

Statistics on the value of debt instruments up to the end of the third quarter of 2025 showed a clear concentration of ownership among Omani investors, whose market share reached approximately RO4.75bn, representing 97.2% of total ownership. In contrast, foreign investors’ holdings amounted to about RO137mn, or 2.8%.

In a statement to the Oman News Agency, Mustafa bin Ahmed Salman, Chairman and CEO of United Securities, attributed the rise in the bond and sukuk market on the Muscat Stock Exchange, as well as globally, to increased demand driven by interest rate cuts implemented by the US Federal Reserve this year and expectations of further easing. “This has led to a rise in overall trading volume on the exchange, particularly in the bond and sukuk segment.”

He added that growing investor interest in bonds and sukuk also stems from the current instability in global financial markets.

Salman noted that the rise in bond and sukuk prices on the Muscat Stock Exchange is also giving a strong boost to the shares of listed companies, which differ from their global counterparts in that they continue to offer attractive returns even as prices rise. He said this has provided an additional incentive for investors to enter the market.