In February 2025, foreign inflows into the Gulf Cooperation Council (GCC) equity markets reached a significant net inflow of $2.47 billion. This figure represents a substantial increase from the $939 million recorded in January. The latest report highlights the UAE’s leadership in this surge, accounting for the entirety of the inflows.

Saudi Arabia followed the UAE with $352 million in foreign inflows, while Kuwait attracted $304 million. In contrast, Qatar experienced outflows of -$212 million, and Oman faced a more pronounced outflow of -$446 million. Year-on-year, foreign inflows have more than doubled from $890 million in February of the previous year.

The cumulative foreign inflows into the GCC have now exceeded $60 billion, a notable rise from $50 billion in August 2024 and $30 billion in March 2022. This upward trend indicates growing investor confidence, likely bolstered by index inclusions, improved corporate earnings, and the allocation of global emerging market funds towards GCC markets.

Saudi Arabia remains the top destination for foreign investments in the region, with cumulative inflows of $34 billion. The UAE follows with $20 billion, while Kuwait and Qatar have seen inflows of $4.7 billion and $3.1 billion, respectively. Qatar’s performance has been inconsistent, impacting its overall inflow figures.

The data from February indicates a shift in investor preferences, with a notable return of capital to the UAE, while Saudi Arabia maintains steady inflows. The Iridium report advised that companies in strong-performing markets should take advantage of this momentum by providing clear updates on business strategies and growth drivers. Meanwhile, countries experiencing outflows, such as Oman and Qatar, are encouraged to address investor concerns regarding liquidity and macroeconomic risks.

Among the emirates, Abu Dhabi and Dubai reported strong gains, with Abu Dhabi garnering net foreign inflows of $2.26 billion and Dubai achieving $208 million in February. Cumulatively, Abu Dhabi’s net inflows totaled $15.9 billion, while Dubai recorded $4.2 billion.

The report emphasized the importance of proactive investor engagement for securing stable, long-term foreign capital, as investor allocations continue to become more dynamic.