Saudi exchange leads GCC net foreign buying in 2Q -Kamco

The UAE followed in a very close second place, with net foreign inflows in the Abu Dhabi exchange reached USD 1.33 bn. Kuwait logged USD 696.5 mn in inflows, while Dubai saw foreign investors scoop up USD 462 mn and Qatar came at USD 333.6 mn.

Not everyone saw love in 2Q: Foreign investors offloaded USD 29.6 mn in Omani equities — their second straight quarter of net selling in the market — and USD 27.9 mn in Bahraini stocks.

Foreign investors are pouring into GCC equity markets, marking the sixth consecutive quarter of net inflows. Net foreign buying across the region doubled q-o-1 to USD 4.2 bn in the second quarter, bringing the total for the first half of the year to USD 7 bn, a nearly 40% y-o-y jump from the USD 5 bn logged in 1H 2024, according to Kamco Invest’s tally.

UAE equities were the most attractive in 1H: Foreign investors were the biggest buyers of UAE equities in the first half, recording net purchases of USD 4.5 bn, followed by Saudi Arabia (USD 1.6 bn) and Kuwait (USD 1.4 bn). Foreigners were net sellers across Qatar, Oman, and Bahrain in 1H, collectively pulling USD 580.7 mn from those exchanges.

Momentum shifting in Saudi? Despite the healthy showing in 2Q, net foreign buying in Saudi stocks fell 37% y-o-y in the first half. Foreign purchases peaked in June, reaching SAR 3.64 bn.

Foreign appetite for GCC equities remains strong, but not evenly distributed. Market-specific reforms, IPOs, geopolitical issues, and economic health will determine whether the region can extend its six-quarter streak of foreign inflows through the rest of the year, the report reads.