Direct Answer
The MSX Shariah Index is a rule-based measurement of Shariah-compliant companies listed on the Muscat Stock Exchange, maintained by Muscat Stock Exchange. Like every index it owns nothing: it is a number produced by applying a published weighting formula to a selected list of companies, revised on a schedule the provider sets.
What this index covers
The MSX Shariah Index covers Shariah-compliant companies listed on the Muscat Stock Exchange, within the Oman market. Muscat Stock Exchange defines which securities are eligible, how they are selected from that pool, and how much each one contributes to the published number.
The index name does not state a fixed company count, so the number of constituents follows the eligibility rules rather than a target.
How constituents are weighted
Market capitalisation weighted on freely tradable shares, with a limit of 10%. Pricing uses the Trade At Last session.
The weighting method is the single biggest driver of how an index behaves. Two indexes covering the same market can diverge for years purely because they weight differently, which is why comparing index levels without knowing the method tells you very little.
What qualifies for inclusion
Companies must pass the AAOIFI Shariah Standard 21 screens for four quarters of the previous year, as assessed by IdealRatings: interest bearing investments and loans each under 30% of average market value and non compliant income under 5% of total income. They must also pass the market activity and financial performance test. Preferred shares and shares on the under monitoring market are excluded.
Eligibility rules are the part of an index most readers never look at and the part that decides what it can possibly measure. A screen that excludes a whole sector, or admits only one listing venue, shapes the result far more than any day of trading does.
When the membership is revised
The sample of 15 companies is reselected each May. Shariah compliance is revised quarterly, in March, June, September and December.
Reconstitution is the one date an index changes shape by design rather than by price. Funds tracking it have to trade toward the new membership, which is why the schedule matters to anyone holding the tracker rather than only to the provider.
The rule that surprises people
The index holds only 15 companies and its sample changes once a year in May, even though compliance status is checked every quarter.
References
- Muscat Stock Exchange: Muscat Stock Exchange MSX Shariah Services Guide on Shariah Index, Shares Purification and Zakat Services, which carries no publication date. Every rule described on this page is taken from this document.
Current MSX Shariah Index constituents
Muscat Stock Exchange publishes and licenses the MSX Shariah Index constituent list. Swoopr does not republish it here. The provider's own page is the authoritative source for current membership and weights.
Related reading
- All stock market indexes: how indexes are built, weighted and revised.
- Emerging Markets indexes: others covering the same region.
- Index concentration: measuring how much of an index sits in its largest holdings.
- Index rebalancing and inclusion effects: what happens to a stock when index membership changes.
Frequently Asked Questions
Who maintains the MSX Shariah Index?
Muscat Stock Exchange maintains the MSX Shariah Index and publishes the methodology document that defines its eligibility and weighting rules.
What does the MSX Shariah Index measure?
It measures Shariah-compliant companies listed on the Muscat Stock Exchange. The index is a calculated number applying a weighting formula to a selected list of companies, and it holds nothing itself.
Where can I see the current MSX Shariah Index constituents?
Muscat Stock Exchange publishes the current constituent list. Swoopr does not republish it, because index providers license constituent data and Swoopr holds no such licence.