Post by : Raman

RIYADH – Gulf stock markets saw a strong rise in foreign investment during the second quarter of 2025, with net inflows reaching $4.2 billion. This marks a 50% increase from the first quarter of the year, according to a detailed report by Kamco Invest, a financial company based in Kuwait.

This growth means that foreign investors—both large institutions and individual buyers—are continuing to put their money into Gulf Cooperation Council (GCC) stock markets. The report also shows that the region has now seen six straight quarters of net foreign buying, showing strong and growing global interest in the Gulf region’s economic future.

First Half of 2025 Sees Big Gains

In the first six months of 2025, foreign investors bought a total of $7 billion worth of GCC stocks. This is a 39.8% increase compared to the same time in 2024.

The main reasons for this rise include:

• Strong company profits

• New economic reforms by governments

• A series of successful initial public offerings (IPOs)

In the first quarter alone, 11 IPOs raised $1.6 billion, up 33% from a year earlier. Saudi Arabia led this boom, accounting for 69% of the IPO proceeds, according to data from PwC Middle East.

Saudi Arabia Leads the Region

Saudi Arabia recorded $1.4 billion in net foreign buying in the second quarter—an impressive jump from just $252 million in the first quarter. This strong increase shows that foreign investors are gaining confidence in Saudi Arabia's financial markets, especially as the country continues its Vision 2030 plan to move away from oil and grow its economy in new areas.

In 2024, Saudi Arabia’s Capital Market Authority (CMA) said net foreign investments in the country’s stock market reached $58.1 billion, a 10% increase from 2023.

Investment by Country in Q2 2025

Here’s a look at foreign investment in major GCC countries during the second quarter of 2025:

• UAE (Abu Dhabi Securities Exchange): $1.33 billion

• Kuwait: $696.5 million

• Dubai: $462 million

• Qatar: $333.6 million

• Oman: -$29.6 million (net outflow)

• Bahrain: -$27.9 million (net outflow)

Only Oman and Bahrain experienced net foreign selling during this period.

Total Foreign Inflows in First Half of 2025

For the first six months of 2025, foreign investors favored these markets:

• UAE: $4.6 billion

• Saudi Arabia: $1.6 billion

• Kuwait: $1.4 billion

This shows how the UAE remains the top choice for foreign capital, followed by Saudi Arabia and Kuwait.

New Rules in Saudi Arabia Boost Access

In a major move, the Saudi Capital Market Authority recently announced that citizens and residents of all GCC countries can now invest directly in Saudi Arabia’s main stock exchange, Tadawul. This is a big step toward opening up the Kingdom’s financial market and attracting more regional investors.

This change supports the Kingdom’s Vision 2030 strategy, which aims to grow the private sector, reduce reliance on oil, and build stronger capital markets.

Stock Market Activity and Performance

The report by Kamco Invest also showed that trading activity in five of the seven GCC stock markets increased in the second quarter. Overall, investor interest remained strong, and foreign buying continued in:

• Kuwait

• Abu Dhabi

• Qatar

Meanwhile, Saudi Arabia saw a mix—net selling in April but buying in May and June. Oman saw net selling every month during the quarter.

Key Factors Affecting Investor Behavior

Kamco Invest said several factors influenced where foreign investors put their money, including:

• General trends in GCC markets

• IPO activity

• Political stability and risks

• Oil prices

• Economic strength of each country

Market Volumes and Values

• Total shares traded in Q2: 94.73 billion (up 9.1%)

• Top gainers in volume:

  • Qatar: 12.5 billion shares (up 39.4%)

  • Dubai: 16.3 billion shares (up 21%)

• Trading volumes fell in:

  • Saudi Arabia: down 5%

  • Bahrain: down 61.5%

The total value of all traded shares across the GCC reached $151.8 billion, down 3.75% from the previous quarter.

Abu Dhabi Sees Major Rise in Trading Value

Among the regional exchanges, Abu Dhabi posted the largest increase in trading value. It rose from $20.3 billion in Q1 to $22.5 billion in Q2.

However, Saudi Arabia, Kuwait, and Bahrain saw drops in the value of their traded shares.

Top 10 Most Traded Stocks in Q2 2025

According to Kamco’s data, six of the top 10 most traded stocks were listed in Saudi Arabia:

1. Al-Rajhi Bank: $5.8 billion

2. Saudi Aramco: $5.1 billion

3. International Holdings Co. (UAE): $4 billion

4. ADNOC Gas (UAE): $3.4 billion

5. stc (Saudi): $3.1 billion

6. Saudi National Bank: $3 billion

7. Emaar Properties (UAE): $2.9 billion

8. Alinma Bank (Saudi): $2.8 billion

9. Kuwait Finance House: $2.5 billion

10. Masar (Saudi): $2.1 billion

Together, these top 10 stocks made up 36.6% of all stock trading value in the region.

The second quarter of 2025 showed that foreign investors trust the growth and reforms happening across the GCC, especially in Saudi Arabia and the UAE. While some markets like Oman and Bahrain still struggle to attract global capital, overall interest in the region remains strong.

As long as economic reforms continue and market access improves, foreign investment in the Gulf is likely to keep rising—playing a key role in the region's long-term growth.

Gulf stock market Q2 2025