UAE Leads GCC In Foreign Investment As Inflows Hit $60 Billion

Foreign inflows into GCC equity markets surged in February 2025, with a net inflow of $2.47 billion, marking a significant jump from $939 million in January. The UAE led the way with $2.47 billion in inflows, followed by Saudi Arabia with $352 million and Kuwait with $304 million. However, Qatar saw outflows of $212 million, while Oman experienced a more significant outflow of $446 million.

Year-on-year, foreign inflows have more than doubled from $890 million in February, reflecting a broader trend of growth. Cumulative foreign inflows across the region have now surpassed $60 billion, a significant rise from $50 billion in August 2024 and $30 billion in March 2022.

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This momentum can be attributed to several factors, including index inclusions, strong corporate earnings growth, and global emerging market funds directing more capital toward GCC markets.

Investor Confidence Boosted By Strong Inflows

Saudi Arabia remains the leader in foreign inflows, accumulating $34 billion, followed by the UAE at $20 billion. Kuwait has attracted $4.7 billion, while Qatar has faced more erratic flows, accumulating $3.1 billion. The increase in foreign investment highlights rising confidence in GCC markets.

Implications For Public Companies

The February data points to a shift in investor preferences, with capital flowing back into the UAE while Saudi Arabia continues to see steady inflows. Public companies in strong-performing markets are encouraged to leverage this momentum by providing clear updates on business strategies and future growth plans. For countries like Oman and Qatar, which have experienced outflows, addressing concerns about liquidity, earnings visibility, or macroeconomic risks will be key.

Proactive engagement with foreign investors will be crucial to securing stable and long-term foreign capital as allocations become more dynamic.

Abu Dhabi And Dubai Show Strong Performance

Among the emirates, Abu Dhabi and Dubai have experienced notable foreign inflows. In February, Abu Dhabi saw net inflows of $2.26 billion, while Dubai recorded $208 million. Over the long term, Abu Dhabi has accumulated $15.9 billion in net inflows, and Dubai has attracted $4.2 billion in foreign investment.

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Cyprus Government Fortifies Economic Resilience Amid Global Uncertainty

by THEFUTURE.TEAM

December 12, 2025

Government Commitment to Stability and Growth

Cyprus continues to build a strong and resilient economic foundation to support business planning and investment, as emphasized by Deputy Minister to the President Irene Piki. Representing President Nikos Christodoulides at the 12th Keve Business Leader Awards, Piki underscored that in today’s volatile global landscape, a consistent and reliable economy remains the cornerstone for long‐term strategic planning and confidence-building among businesses.

Strengthening Competitive Edge and Attracting Investment

Piki lauded the role of the Cyprus Chamber of Commerce and Industry (Keve) for its dedication to promoting Cyprus as an attractive investment destination and for supporting the expansion of local businesses. Reflecting on President Christodoulides’s recent address at Keve’s annual general assembly, she outlined the government’s vision for a more competitive Cyprus, which includes expanding market access, improving financing channels, and implementing a streamlined, business-friendly regulatory framework—all pivotal as Cyprus prepares for its EU Council presidency.

Economic Indicators Reflecting Confidence

Despite global uncertainties, Piki highlighted that the Cypriot economy continues to demonstrate resilience: gross domestic product grew by 3.4% in 2024, and forecasts indicate nearly 4% growth in 2025. With inflation remaining among the lowest in the European Union and unemployment dropping below 5%, these indicators affirm steady economic progress. Furthermore, positive ratings from international credit agencies, which have placed Cyprus in the A category with upbeat outlooks, underscore the success of prudent economic policies.

Fiscal Discipline and Strategic Investments

The government’s upcoming 2026 budget, which reinforces fiscal stability with a surplus balance and targets a decline in public debt to 50.9% of GDP, opens the door for strategic policy interventions. Piki noted that investments in energy, digital infrastructure, technology, and green growth are key priorities. Enhanced by the nearing completion of Recovery and Resilience Plan projects, Cyprus is now setting the stage for the next seven-year EU funding framework, ensuring a robust platform for sustained growth with active collaboration from the business community.

Regulatory Reforms and Market Liberalization

Central to the government’s agenda is the imminent tax reform, expected to be finalized on December 22 and implemented on January 1, 2026. This reform is designed to bolster business liquidity and attract new investments. The establishment of the National Enterprise Development Organisation further complements these efforts by offering financing tools and advisory services for small and medium-sized enterprises. Complementing these initiatives, the Cyprus Equity Fund is actively investing in innovative companies, while the Ministry of Energy grant schemes are projected to mobilize €360 million by 2027 to boost competitiveness.

Accelerating Digital Transformation and Energy Reforms

In its pursuit of a modernized business environment, the government is set to introduce a Business Service Centre in central Nicosia in 2025, consolidating licensing procedures to significantly reduce bureaucratic delays. In tandem, the impending launch of a competitive electricity market in October 2025 will empower companies to select their energy suppliers, fostering market competition and fair pricing.

Nurturing Human Capital

Recognizing the importance of talent in driving economic progress, the government is intensifying efforts to attract skilled professionals back to Cyprus. The Minds in Cyprus initiative, a collaboration with Keve and Invest Cyprus, seeks to reverse the talent drain by engaging Cypriots abroad through a series of events scheduled in the United States, United Kingdom, and Greece during 2026.

Commitment to Sustainable Growth

Concluding her address, Deputy Minister Piki congratulated the award recipients for their innovation and resilience, asserting that their achievements are a testament to the dynamism of the Cypriot business community. The government remains steadfast in its commitment to implementing reforms that support a stable, competitive, and sustainable economic future for Cyprus.

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