GCC Equity Markets Witness $616.7 Million Surge in Foreign Capital Inflows

UAE, 20 June, 2024 : Foreign capital inflows into GCC equity markets soared to $616.7 million in May, driven by robust performances in the UAE and Saudi Arabia. Year-to-date, GCC markets accumulated net inflows totaling $1.77 billion, according to data from Dubai-based Iridium.

The positive trend extended to GCC Emerging Markets, comprising Kuwait, Qatar, Saudi Arabia, and the UAE, which collectively recorded a combined inflow of $636.2 million. Leading the region, the UAE registered the highest net inflow of $680.4 million, followed by Saudi Arabia with $169.3 million. However, Kuwait (-$56.4 million) and Qatar (-$157.1 million) experienced net outflows.

This rebound contrasts with April 2024, which saw a total net outflow of -$596.7 million across the GCC, driven by significant outflows from Saudi Arabia, Kuwait, the UAE, and Qatar.

Iridium previously noted that these fluctuations reflect market responses to heightened geopolitical tensions and a challenging global economic climate, influenced by sustained higher interest rates.

In year-to-date figures, the UAE maintained its lead with $1.67 billion in net inflows, followed by Saudi Arabia at $224 million. Kuwait reported modest net inflows of $190 million, while Qatar recorded net outflows amounting to -$125 million.

Additionally, data highlighted positive expectations for index performance, with the MSCI Saudi Arabia Index leading at 51% probability of index rise, followed by MSCI Qatar at 37%, and both MSCI UAE and MSCI Kuwait at 28%. These figures underscore the significant role of foreign capital in driving market dynamics across the GCC.

Source : www.zawya.com