GCC equities have reversed two months of outflows, drawing in a net $1.87 billion in foreign capital as global equity markets recovered and risk appetite improved, according to a recent report from investor relations consulting firm Iridium Advisors.
The UAE experienced inflows of $764 million, closely followed by Saudi Arabia with $752 million. Kuwait attracted $290 million, while Qatar brought in $73 million. This positive shift came after a global recovery as tariff-related volatility diminished, several GCC investor conferences were held, and significant deal announcements occurred during President Trump’s visit to the region in May.
While foreign capital is making a return, investors continue to be sensitive to short-term developments and are selective in their allocations. The report emphasized that now is the critical moment for listed companies to uphold full transparency, engage consistently with investors, and respond swiftly to market fluctuations.
April 2025 saw ongoing pressure on GCC foreign flows, as the region reported a net outflow of -$68 million, an improvement from March’s -$407 million outflow, yet still negative.
UAE’s strong recovery
The UAE led the recovery with a $277 million net inflow following March’s -$61 million outflow. Kuwait saw an addition of $50 million in inflows, and Qatar brought in $42 million. However, Saudi Arabia remained the primary source of outflows, with a recorded -$426 million in April, marking the largest monthly outflow in the past 18 months and deepening the negative trend from March. Notably, the April data emerged against the backdrop of persistent global market volatility following US tariff announcements, an increase in oil production, and the VIX index remaining elevated at 24.70 at the end of the month, as highlighted by Iridium Advisors.
Cumulative net flows over the past 12 months remain positive, yet the robust momentum observed in Q1 has evidently faded. In terms of indices, the MSCI GCC Index slipped to 731 (-1.2 percent MoM), the MSCI UAE Index increased to 3656 (+0.7 percent MoM), and the MSCI Saudi Index fell to 479 (-3.4 percent MoM).
Key takeaways for public companies
Foreign investors remain active in the region but are exercising greater selectivity. The UAE’s recovery illustrates that companies presenting stable results and clear communication continue to draw capital. Saudi Arabia’s ongoing outflows underscore how swiftly confidence can diminish amidst rising macro uncertainty. Senior executives should acknowledge that global events, rather than solely local fundamentals, are influencing investor sentiment, the report said.
Companies that articulate how they are navigating this environment— even without all the answers— are more likely to sustain investor trust. Silence breeds doubt, and in today’s market, that can come at a cost.
