Under Islamicly's Shariah framework, shares in a listed company may be considered permissible to own and trade when two conditions are met. The underlying business activity and the applicable financial criteria must both satisfy the Shariah screening methodology. That methodology is prescribed by AAOIFI standards and reviewed by Islamicly's globally renowned Shariah Supervisory Board.
Shariah Compliance in Oman at a Glance
By number of securities
- Shariah-compliant34
- Non-compliant79
By market capitalisation
- Shariah-compliant42.6%
- Non-compliant57.4%
How Islamicly Screens a Stock
Islamicly applies three-level screening to every listed equity, aligned with AAOIFI Shariah Standard No. 21, with a fourth step governing the income that remains. A company must clear all three screens to earn a compliant rating.
| Screen | What It Requires |
|---|---|
| 1 · Business sector | Companies deriving 5% or more of revenue from alcohol, conventional finance, gambling, tobacco, pork, adult content or deferred gold/silver trading are excluded, as defined by AAOIFI and enhanced by the Islamicly Shariah Board. |
| 2 · Debt ratio | Interest-bearing debt must stay below 30% of the 36-month average market capitalisation. |
| 3 · Cash compliance | (Cash + interest-bearing securities) ÷ market value of equity, on a 36-month average, must be below 30%. |
| 4 · Purification | Any residual non-permissible income that was tolerated during the sector compliance check is purified by donating that proportion of dividends to charity. |
Purification applies to dividends, not capital gains.
View Islamicly's full screening criteriaTop 10 Stocks in Oman by Market Capitalisation
1. OQ Exploration and Production
OQ Exploration and Production is the upstream oil and gas arm of OQ, Oman's state-owned energy group, with interests in producing and exploration blocks across the Sultanate. It listed on the Muscat Stock Exchange in 2024. One revenue stream — finance lease income — is non-permissible, and the company also earns interest income, but together they stay below 5% of total revenue. The business sector screen therefore passes. The stock passes both debt compliance and cash compliance, and is classified Shariah-compliant.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
OQ Exploration and Production is classified Shariah-compliant.
2. Bank Muscat
Bank Muscat is Oman's largest bank, providing retail, corporate, investment and treasury banking, and operates an Islamic banking window, Meethaq. Bank Muscat's non-permissible operating revenue exceeds 5% of total income. The stock therefore fails the business sector screen. It also fails debt compliance and cash compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Fail | Fail | Fail |
Bank Muscat is classified Shariah non-compliant.
3. Oman India Fertiliser Company
Oman India Fertiliser Company is a joint venture producing ammonia and granular urea at Sur, with most of its urea output sold to India under a long-term offtake agreement. A review of the revenue segments found no involvement in non-permissible business activities, with interest revenue below 5% of total revenue. The business sector screen therefore passes. The stock passes both debt compliance and cash compliance, and is classified Shariah-compliant.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
Oman India Fertiliser Company is classified Shariah-compliant.
4. Sohar International Bank
Sohar International Bank is an Omani commercial bank offering retail, corporate and treasury banking, alongside an Islamic banking window. Sohar International Bank's non-permissible operating revenue exceeds 5% of total income. The stock therefore fails the business sector screen. It also fails debt compliance and cash compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Fail | Fail | Fail |
Sohar International Bank is classified Shariah non-compliant.
5. Asyad Shipping Company
Asyad Shipping Company owns and operates a fleet of tankers, gas carriers and dry-bulk vessels, and is part of Asyad Group, Oman's state-owned logistics group. Asyad Shipping's finance lease income and interest income are non-permissible and together exceed 5% of total revenue. The stock therefore fails the business sector screen. It also fails debt compliance; cash compliance passes.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Fail | Fail | Pass |
Asyad Shipping Company is classified Shariah non-compliant.
6. Oman Telecommunications Company (Omantel)
Omantel is Oman's incumbent telecommunications operator, providing mobile, fixed-line, broadband and wholesale services, and is the largest shareholder in the regional operator Zain Group. A review of the revenue segments found no involvement in non-permissible business activities, with interest revenue below 5% of total revenue. The business sector screen therefore passes. The stock fails both debt compliance and cash compliance, and is therefore classified Shariah non-compliant.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Fail | Fail |
Oman Telecommunications Company (Omantel) is classified Shariah non-compliant.
7. OQ Gas Networks
OQ Gas Networks owns and operates Oman's natural gas transportation network, carrying gas from processing plants to power stations, industry and export facilities. A review of the revenue segments found no involvement in non-permissible business activities, with interest revenue below 5% of total revenue. The business sector screen therefore passes. The stock passes both debt compliance and cash compliance, and is classified Shariah-compliant.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
OQ Gas Networks is classified Shariah-compliant.
8. OQ Base Industries
OQ Base Industries produces ammonia, methanol and liquefied petroleum gas from facilities in the Salalah Free Zone. A review of the revenue segments found no involvement in non-permissible business activities, with interest revenue below 5% of total revenue. The business sector screen therefore passes. The stock passes both debt compliance and cash compliance, and is classified Shariah-compliant.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Pass | Pass | Pass |
OQ Base Industries is classified Shariah-compliant.
9. National Bank of Oman
National Bank of Oman is one of the Sultanate's oldest commercial banks, providing retail, corporate and wholesale banking, with an Islamic banking window, Muzn. National Bank of Oman's non-permissible operating revenue exceeds 5% of total income. The stock therefore fails the business sector screen. It also fails debt compliance and cash compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Fail | Fail | Fail |
National Bank of Oman is classified Shariah non-compliant.
10. Bank Dhofar
Bank Dhofar is an Omani commercial bank offering retail, corporate and investment banking, with an Islamic banking window, Dhofar Islamic. Despite the Islamic window, Bank Dhofar's conventional banking and non-Islamic investment revenue exceed 5% of total revenue. The stock therefore fails the business sector screen. It also fails debt compliance and cash compliance.
| Business Activity | Debt Compliance | Cash Compliance |
|---|---|---|
| Fail | Fail | Fail |
Bank Dhofar is classified Shariah non-compliant.
Compliance Status Is Dynamic, Not Permanent
A company classified compliant today can fail next period if it takes on interest-bearing debt, parks cash in conventional deposits, or changes its revenue mix. Islamicly monitors available information daily, while financial screening is reassessed when updated financial information becomes available. Use the Islamicly app to be alerted the moment a holding changes status.
Sector-Wise Shariah Screening in Oman
Basic Materials clears the highest share of the larger sectors, at 50%. Financial, the largest sector, is the lowest at 13% — four of 31.
| Sector | Compliant | Shariah non-compliant | Total | % Compliant |
|---|---|---|---|---|
| Financial | 4 | 27 | 31 | 13% |
| Services | 6 | 11 | 17 | 35% |
| Consumer/Non-Cyclical | 4 | 10 | 14 | 29% |
| Utilities | 3 | 11 | 14 | 21% |
| Basic Materials | 6 | 6 | 12 | 50% |
| Capital Goods | 3 | 8 | 11 | 27% |
| Energy | 2 | 4 | 6 | 33% |
| Investment Services | 3 | 0 | 3 | 100% |
| Technology | 2 | 0 | 2 | 100% |
| Transportation | 0 | 2 | 2 | 0% |
| Consumer Cyclical | 1 | 0 | 1 | 100% |
| Grand Total | 34 | 79 | 113 | 30.1% |
About Islamicly
Islamicly is a Shariah-certified app and web platform for screening Shariah-compliant equities. It provides Shariah compliance information for stocks listed on the Muscat Stock Exchange, and for companies listed across global markets.
Screening is carried out against AAOIFI-based standards and reviewed by Islamicly's Shariah Supervisory Board, chaired by Dr. Mohamed A. Elgari (Saudi Arabia), with Dr. Muhammad Amin Qattan (Kuwait) and Dr. Nazih Hammad (Canada). Every classification published by Islamicly, including those in this report, is produced under that framework.
On the app and web platform, investors can check the Shariah status of any listed stock, screen an existing portfolio for non-compliant positions, view a stock's historical compliance data, calculate dividend purification amounts, and receive alerts when a holding changes status. Islamicly also offers Shariah-screened model portfolios, digital gold and silver, mutual funds and managed-investment options, and runs free AMAs and webinars on halal investing.
Check the current Shariah status of any Omani stock on the Islamicly app or web platform — screen individual stocks, screen an existing portfolio, calculate purification amounts, and get alerted when a holding changes status.
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