In May 2024, the Gulf Cooperation Council (GCC) equity markets recorded a significant increase in foreign capital flows, with a net inflow of $616.7 million. In its latest GCC Foreign Flows Analysis, Iridium, an investor relations advisor, reveals that the four GCC emerging markets combined (Kuwait, Qatar, Saudi Arabia and the UAE), recorded a higher net inflow of $636.2 million.
UAE leads region’s net inflows
In May, the UAE led the GCC region’s equity market growth with the highest net inflow of $680.4 million, followed by Saudi Arabia with $169.3 million. However, Kuwait and Qatar experienced net outflows of -$56.4 million and -$157.1 million, respectively. This month’s data reveals a rebound in the region’s equity markets, which saw a total net outflow of -$596.7 million in April 2024.
Since the beginning of 2024 to date, the GCC equity markets have accumulated net inflows of $1.77 billion, underscoring a strong start to 2024. So far this year, the UAE has consistently led inflows, contributing $1.67 billion to the total. Saudi Arabia followed with $224 million in net inflows. Meanwhile, Kuwait had mixed performances, posting modest net inflows of $190 million while Qatar experienced net outflows of -$125 million.
Read: Three new IPOs add $5.8 billion to UAE’s stock market capitalization in 2024
Foreign capital drives market performance
Notably, the probability of an index rise after net inflows continues to be highest for the MSCI Saudi Arabia Index at 51 percent, followed by the MSCI Qatar Index at 37 percent. In addition, both the MSCI UAE and MSCI Kuwait Indexes stood at 28 percent. This emphasizes the importance of foreign capital in driving equity market performance across the GCC region.
In its latest report, Iridium states: “To sustain and enhance these positive trends, it is necessary to maintain institutional-grade investor relations.” The report also emphasizes the importance of effective engagement with international analysts and investors to obtain, maintain, and retain their trust, which is vital for market stability and growth.
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