Oman’s bond, sukuk market surges 119%

Business Saturday 20/January/2024 19:25 PM
Oman’s bond, sukuk market surges 119%

Muscat: The value of trading in the bond and sukuk market saw a growth of 119 percent to reach OMR126.5 million in 2023, compared to OMR57.6 million in 2022.

The bond and sukuk market provides additional options for investors on the Muscat Stock Exchange (MSX), and was able to attract more investors.

The bond and sukuk market in 2023 saw a remarkable surge in in the number of executed deals, which jumped to 2,035 compared to 1,029 executed in 2022. However, the market value of the bond and sukuk market declined at the end of last December to OMR4.4 billion in 2023 compared to OMR4.8 billion at the end of 2022.

The total number of securities listed in the bond and sukuk market at the end of last December reached 59, but trading was limited to only 29 securities.

Bank Muscat’s first-class perpetual bonds topped the most traded securities in terms of trading value, with more than OMR49 million, accounting for 38.7 percent of the total trading value witnessed in the the market. Ominvest’s 2023 perpetual bonds came in next at OMR28.7 million while Sohar International Bank’s 2019 perpetual bonds was at OMR10.3 million.

Mohammed Al Barwani Company’s US dollar-denominated sukuk trading value was ta OMR7.5 million while the 59th issue of Government Development Bonds (GDBs) came next with a total trading value of OMR5.9 million.

Last year also witnessed the listing of 9 securities in the bond and sukuk market with a total value of OMR394.6 million. In the GDBs sector, the 62nd issue of GDB was listed with a value of OMR67.5 million.

Other notable entries in the bank bonds sector included additional permanent subordinated bonds for the National Bank of Oman OMR54 million, Oman Arab Bank OMR50 million, and Bank Dhofar with a value of OMR40 million.

In the investment and finance companies sector, permanent unsecured subordinated bonds of the Oman International Development and Investment Company (Ominvest) were listed at a value of OMR60.1 million and the unsecured, non-transferable subordinated bonds issued by Taajeer Finance Company had a value of OMR14.9 million.

In the sukuk sector, the seventh issue of sovereign sukuks were listed at OMR76.3 million and Mohammed Al Barwani Company’s new sukuks were listed at 30.1 million.

Oman Finance Company (OFC) contributed to the financial landscape by issuing free unsecured bonds, mandated to convert into shares after five years, in line with the decisions of the annual ordinary general assembly held in March 2023.