UAE and Saudi Arabia Drive GCC Equity Inflows to $616.7M

Foreign capital inflows into GCC equity markets surged to $616.7 million in May, driven primarily by robust growth in the UAE and Saudi Arabia. Year-to-date, GCC equity markets have accumulated net inflows of $1.77 billion, according to data from Dubai-based management consultants and financial advisors, Iridium.

This positive trend boosted net inflows in GCC Emerging markets, with Kuwait, Qatar, Saudi Arabia, and the UAE collectively recording an inflow of $636.2 million. The UAE led the region with the highest net inflow of $680.4 million, followed by Saudi Arabia at $169.3 million. In contrast, Kuwait and Qatar experienced net outflows of $56.4 million and $157.1 million, respectively.

Despite the underperformance of two markets, the latest figures reversed the negative trend from April 2024, when the GCC posted a total net outflow of $596.7 million. Saudi Arabia saw the largest outflow in April at $409 million, followed by Kuwait ($97 million), the UAE ($48.6 million), and Qatar ($34.9 million).

Iridium attributed the shifts in April to broader market responses to escalating tensions in the Middle East and a challenging global economic climate, particularly the impact of prolonged higher interest rates.

In the year-to-date inflow charts, the UAE remains in the lead, contributing $1.67 billion to the total. Saudi Arabia follows with $224 million in net inflows. Meanwhile, Kuwait reported modest net inflows of $190 million, and Qatar experienced net outflows amounting to $125 million.

Source: Bindu Rai / Zawya