Foreign investor flows into GCC equity markets were positive in July 2025, with net inflows of $1.5 billion across the region, but momentum slowed from the prior month as allocations became more selective.
According to Iridium Advisors’ monthly Foreign Flow Analysis, Saudi Arabia led with $541 million in net inflows, followed by the UAE at $479 million, Kuwait at $325 million and Qatar at $180 million.
Notably, Dubai was the only market that attracted higher inflows compared to June, recording inflows of $294 million.
Cumulative net inflows for 2025 total $8.7 billion
The report revealed that the MSCI GCC index rose 2.2 percent in July, outperforming the MSCI EM index, which gained 1.7 percent. This growth was underpinned by strong Q2 earnings in banks, telecom and real estate, despite a more cautious macro backdrop.
The MSCI Saudi Arabia index was the only index to decline in July, weighed down by concerns over project execution and oil price volatility, rather than underlying fundamentals. Despite this, Saudi Arabia continued to attract significant foreign capital, highlighting that flows remain anchored by long-term growth potential rather than short-term price moves.
In addition, Kuwait extended its run to 13 consecutive months of net foreign inflows, the only GCC market with a clean streak. Meanwhile, Qatar maintained net inflows as non-oil GDP and banking sector earnings stayed firm.
Year-on-year, July’s foreign flows were sharply higher than last year, and cumulative net inflows for 2025 YTD now total $8.7 billion.
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Dubai emerges as the best-performing equity market in the GCC
Dubai emerged as the best-performing equity market in the GCC last month, with a gain of 7.9 percent. Following Dubai came Oman and Qatar with gains of 6.2 percent and 4.8 percent, respectively.
According to Kamco Invest‘s latest GCC Markets Monthly Report, Dubai’s DFM General Index registered its fourth consecutive monthly gain in July 2025, rising by 7.9 percent, the biggest monthly gain in the GCC market, closing the month at 6,159.2 points. This strong performance boosted the index’s year-to-date return to 19.4 percent, also the highest in the GCC this year.
Trading activity on the exchange also strengthened in July. The total volume of shares traded surged by 7.4 percent, reaching 7.5 billion shares compared to 7 billion shares in June. Likewise, the total value of shares traded rose by 10.7 percent, amounting to AED16.7 billion in July versus AED15.1 billion in June.
Looking ahead, foreign investors are prioritizing markets with sustainable earnings, liquidity and macro stability, and are quick to adjust allocations in response to sector leadership and trading momentum.
Public companies across GCC markets should expect ongoing rotation as investors respond to market trends and sector performance.
