The UAE’s two main stock exchanges, the Abu Dhabi Exchange (ADX) and Dubai Financial Market (DFM), attracted US$1 billion in net foreign inflows in the first three months of 2024, according to data from Iridium.
This accounted for more than half of the combined inflow of $1.75 billion for all GCC markets.
Iridium’s monthly Foreign Flows report showed that this trend continued in March 2024 during which time $551 million in combined net foreign inflows poured into GCC markets $445 million of which went into UAE markets.
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According to Iridium, foreign investor inflows into GCC equity markets have consistently risen since 2019 and now exceed $47 billion.
These inflows “play a vital role in supporting GCC market performance”, states the report.
“Our analysis shows that following net foreign inflows, the probability of market uptrends significantly increases,” states the report. “For instance, the MSCI Saudi Arabia Index is 50% more likely to experience an uptrend during periods of net inflows compared to outflows.”