GCC equities market sees surge in foreign investment

The GCC’s equity markets captured US$890 million in net inflows from foreign investors in February 2024, according to the latest figures from research firm Iridium Advisors.

The report shows that the momentum from the beginning of the year has continued, following $311 of net inflows in January.

This also marks a recovery from the dip in December when there was $326 million in net outflows.

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According to Iridium, the figures support the hypothesis that foreign flows influence market direction. In its five-year analysis, the MSCI GCC index has a 25% greater probability of trending upwards during periods of net foreign buying.

Iridium also credits the recent surge to two market specifically, Saudi Arabia and UAE which have contributed $529 million and $274 million in net inflows respectively.

The Iridium report also highlights the sensitivity of GCC markets to geo-political events. The outbreak of conflict in Gaza in October led to $1.48 billion in net outflows that month.

However, the resultant recovery in 2024 “underscores the region’s resilience and its ability to attract foreign investment despite uncertainties”, states the report.

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