ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
MUSCAT SECURITIES MARKET
ECONOMIC AND POLITICAL DEVELOPMENTS
Yearbook report
The Omani economy continued to witness
robust growth for the five consecutive years in
2008 with its GDP at current market prices
rising by 44 percent supported by accelerated
activities in both oil and non- oil sectors. In
2008 there was a turnaround in crude oil
production which rose by 6.8 percent to 277
million barrels over the previous year. Brisk
activities in the petroleum sector not only
overshadowed on diversification but also
improved its share in GDP to 51.3 percent in
2008 from an average share of 46.3 percent in
the previous four years. Non-petroleum
activities also recorded a robust growth of
27.2 percent in 2008 as against an average
growth of 16.5 percent in the previous four
years. Manufacturing sector witnessed an
impressive growth of 40.5 percent in 2008 and
its share in total GDP was maintained at little
over 10 percent. In 2008, value added in the
service sector grew at a higher rate of 22.5
percent compared to an average growth of
14.4 percent in the previous four years.
The year 2009 was an exceptionally difficult
year with large contraction of world GDP
reduction in employment, sharp decline in
global trade volumes and above all associated
loss of economic welfare for the mankind as a
whole. Nevertheless investors were more
optimistic as deterioration in economic
conditions was less rapid in the more recent
period than before or stabilizing in some
sectors.
Like many other countries of the region Oman
economy has been impacted by the
international financial crisis. The slump in oil
prices since the last quarter of 2008 and the
weak international demand for good will
contribute to significant decline in Oman’s
economic growth.
The MSM witnessed traded volume of 6,091
billion shares during the year 2009 recording
an increase of 37.17% compared with 4,441
billion traded shares as on 2008. During the
year 2009 the value of the traded shares was
US$ 5380 billion with a decrease of 37.61%
compared with US$ 9511 billion during the
year 2008. The Market capitalization increased
in 2009 recording US$ 23.4 billion compared
with US$15 billion during 2008.
In view of the adverse international
development sustaining high rate of growth
the Omani government emerged a major
challenging policy in 2009. Although fiscal
position will be under pressure, it will not pose
a near –term financing problem as the
government has accumulated large amount of
foreign reserve out of fiscal surpluses during
the recent years. The investment stability fund
created by the government would support the
unexpected downturn in the local stock
market.
The MSM index rose from 5441.12 points,
during 2008, recording 6368 points in 2009
with an increase of 17%. During 2009, the
Muscat Securities Market scored the second
grade from among the GCC exchanges.*
* Information provided by MSM.
As for Muscat Securities Market, it is worth
mentioning that trading volume reached
US$9.51 billion in 2008 compared with
US$6.91 billion in 2007, thus posting a record
and unprecedented increase of 36.1% since
its establishment in 1989. Meanwhile, the MSM
price index fell from 9035 points at the end of
2007 to the level of 5441 points at the end of
2008, registering a drop of 39%. This is the
lowest rate of fall amongst other Gulf financial
markets.
Key Information Contacts
Ministry of National Economy www.moneoman.gov.om
Capital Market Authority www.cma-oman.gov.om
Oman Chamber of Commerce and Industry www.cbo-oman.org
Financial Corporation www.fincorp.org
National Bank of Oman www.nbo.co.om
REAL GDP
(OMR millions)
CONSUMER PRICES (% CHANGE PA; AV)
(%)
10
9
8
7
6
5
4
3
2
1
0
14
12
10
8
6
4
2
0
2005
PAGE 130
2006
2007
2008
2009
2010
2005
2006
2007
2008
2009
2010