Tuesday, 21 October 2025
Foreign investors maintained their positive momentum in Gulf Cooperation Council (GCC) stock markets for the seventh consecutive quarter, purchasing a net USD 4.8 billion in equities during Q3 2025, up from USD 4.2 billion in Q2, according to Kamco Invest’s GCC Trading Activity Quarterly Report – Q3 2025.
Cumulative net buying by foreigners reached USD 11.7 billion in the first nine months of 2025, a 35% increase year-on-year. Saudi Arabia remained the region’s primary destination for foreign capital, attracting USD 2.8 billion in Q3, followed by Abu Dhabi (USD 798.7 million), Dubai (USD 614.9 million), Kuwait (USD 283.3 million), and Qatar (USD 267.2 million). Bahrain recorded a modest inflow of USD 22.9 million, while Oman saw continued outflows with USD 38.7 million in net sales.
For the first nine months of 2025, the UAE led regional inflows, with foreign investors purchasing USD 5.9 billion in shares, ahead of Saudi Arabia (USD 4.5 billion) and Kuwait (USD 1.7 billion). Foreign investors were net sellers only in Oman, with cumulative sales of USD 527.5 million.
Kamco’s analysts said that Saudi Arabia’s recent decision to lift its foreign ownership cap beyond 49%, pending final approval, is expected to further boost investor appetite and potentially add USD 10 billion in new inflows once implemented.
The MSCI GCC Index advanced 4.6% in Q3, closing at 767.9 points—its strongest quarterly performance in nearly two years. Oman led the rally with a 15.1% rise, followed by Kuwait (4%), Saudi Arabia (3%), and Qatar (2.8%). Dubai, Abu Dhabi, and Bahrain posted smaller gains between 0.2% and 2.3%.
Saudi Arabia’s market dynamics were particularly active. Local investors turned net sellers, offloading SAR 10.5 billion worth of shares, while foreigners and GCC investors bought SAR 10.1 billion and SAR 456.9 million, respectively. September saw the highest monthly inflows, coinciding with a 5% one-day surge in the Saudi benchmark index following reports of eased foreign ownership limits.
Trading activity across GCC exchanges rose 15% quarter-on-quarter, with 108.9 billion shares traded in Q3. Kuwait led with a 38% increase in volumes, while Oman’s activity more than doubled. By contrast, Qatar, Abu Dhabi, and Dubai saw slight declines.
The aggregate value of traded shares remained stable at USD 151.3 billion, down marginally from Q2. The banking sector accounted for the largest share, with traded value rising 22.9% year-on-year to USD 35.9 billion. Al Rajhi Bank topped the list with USD 5.7 billion in trades, followed by Saudi National Bank and Alinma Bank.
Sector-wise, consumer services, real estate, and diversified financials showed positive contributions, while materials, capital goods, and F&B recorded sharp declines. Over the first nine months of 2025, total GCC trading value fell 10.4% year-on-year, reaching USD 478.9 billion, though real estate and banking posted respective gains of 61% and 18%.
Kamco Invest noted that consistent foreign inflows underscore sustained confidence in the GCC’s economic fundamentals, despite uneven performance among member states. The anticipated regulatory changes in Saudi Arabia and ongoing infrastructure investments across the region are expected to support further capital inflows into 2026.
Source: GCC
