Foreign inflows into GCC equity markets were strong in February 2025, with a net inflow of $2.47 billion, marking a sharp acceleration from $939 million in January, a new report said on Thursday.
The UAE led with $2.47 billion in inflows, followed by Saudi Arabia at $352 million and Kuwait at $304 million. Qatar saw outflows of -$212 million, while Oman recorded a significant outflow of -$446 million.
Year-on-year, foreign inflows have more than doubled from $890 million in February. This momentum is part of a broader acceleration, as cumulative foreign inflows have now surpassed $60 billion, up from $50 billion in August 2024 and $30 billion in March 2022.
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The pace of inflows suggests increased investor confidence, likely supported by index inclusions, corporate earnings growth, and global emerging market (GEM) funds allocating more towards GCC markets.
Saudi Arabia continues to lead the region with $34 billion in cumulative foreign inflows, followed by the UAE at $20 billion, Kuwait at $4.7 billion, and Qatar at $3.1 billion, which has struggled with inconsistent flows.
Takeaways for public companies
February’s data highlights shifting investor preferences, with capital rotating back into the UAE while Saudi Arabia maintains steady inflows.
“Companies in strong-performing markets should capitalize on this momentum by reinforcing investor confidence through clear updates on business strategy and future growth drivers. For markets experiencing outflows, including Oman and Qatar, investor concerns around liquidity, earnings visibility, or macroeconomic risks should be addressed,” the Iridium report said.
Read | UAE’s non-oil sector sees steady growth in February as output, new orders rise: PMI
“With foreign investors becoming more dynamic in their allocations, proactive investor engagement will be key to securing stable, long-term foreign capital,” the report added.
Abu Dhabi, Dubai see gains
Among the emirates, Abu Dhabi and Dubai led strongly. Abu Dhabi saw net foreign inflows of $2.26 billion, while Dubai stood at $208 million in February. Cumulatively, Abu Dhabi recorded $15.9 billion in net inflows, while Dubai recorded $4.2 billion.
