UAE Dominates GCC with $680.4 Million Foreign Capital Inflow in May

UAE, 20 June, 2024 :  The UAE topped the GCC region with foreign capital net inflows of $680.4 million in May, reversing April’s net outflow of $48.6 million. This rebound followed a challenging period marked by escalating Middle East tensions and a tough global economic climate, including higher interest rates.

Abu Dhabi led the way with $686 million in net foreign capital inflows in May, up from a net outflow of $19 million in April. Dubai, however, maintained net outflows of $30 million from the previous month.

Year-to-date, Abu Dhabi recorded $1.344 billion in net inflows, maintaining its lead, while Dubai secured $323 million. Saudi Arabia followed with $224 million, showing resilience despite intermittent outflows. Kuwait posted net inflows of $190 million, while Qatar experienced net outflows of $125 million.

In May 2024, GCC equity markets saw a positive trend with a net inflow of $616.7 million. The four GCC Emerging Markets (Kuwait, Qatar, Saudi Arabia, and the UAE) combined for a higher net inflow of $636.2 million.

Iridium, the Dubai-based management consultants and financial advisors, reported significant volatility in GCC equity markets over the previous three quarters due to geopolitical instability. After major inflows in mid-2023, markets faced steep outflows, particularly in October and April, following renewed conflicts in the Israel-Gaza region.

Source : www.zawya.com