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.