GCC-listed companies exhibited remarkable resilience in Q2 2025, attracting 4.2 billion in net foreign inflows, marking the highest figure since Q4 2022. Notably, inflows for June 2025 alone reached $2.4 billion. This occurred despite a backdrop of heightened geopolitical risks and market volatility, as highlighted in a recent report from investor relations consulting firm Iridium Advisors.
The region experienced direct repercussions from the Israel-Iran conflict, which included a missile strike on Qatar and escalating energy and security tensions throughout the Gulf. Oil prices fluctuated dramatically as news coverage evolved, further complicating the situation. Nevertheless, foreign investors continued to demonstrate their confidence in GCC equity markets, with Saudi Arabia leading June inflows at $971 million. This was followed by the UAE (+$840 million), Kuwait (+$375 million), and Qatar (+$219 million).
Constructive foreign investor appetite
On a month-over-month basis, broad-based regional inflows accelerated, contributing to a 3.1% rise in the MSCI GCC Index and lifting individual country benchmarks, signaling a renewed confidence in the region’s fundamentals. Kuwait extended its streak to 12 consecutive months of inflows, the longest duration in the GCC, emphasizing sustained interest from foreign investors.
The appetite of foreign investors remains constructive as the region approaches the third quarter. However, focus is now shifting to potential headwinds stemming from global trade dynamics and possible US tariffs, which pose key risks for the upcoming results cycle. The GCC’s ability to draw capital amidst geopolitical conflict and market fluctuations reinforces its status as a relative safe haven. For listed companies, this environment necessitates ongoing transparency and proactive engagement with investors regarding potential risks to year-end guidance. Early communication and clear disclosure will be vital in maintaining investor trust should uncertainty continue, Iridium Advisors further noted.
