The Abu Dhabi Stock Exchange (ADX) has recorded the highest levels of foreign investment among the GCC stock markets for the first quarter, according to a recent report.
As per data from Kamco Invest, foreign investors purchased shares worth $2.3 billion on the ADX, leading the region, followed by Kuwait’s Boursa at $705.6 million. The Dubai Financial Market ranked third, with foreign investments totaling $343 million.
Across the GCC stock markets, foreign investors, including both institutional and retail categories, were net buyers during the first quarter of 2025, totaling net purchases of $2.8 billion, a decline from $3.0 billion in the previous quarter. “The early part of the year exhibited positive trends with consistent buying in January and February, succeeded by net selling in March 2025,” commented Junaid Ansari, Kamco’s Head of Investment Strategy & Research, alongside Analyst Vineetha K. Yeluri.
The following two markets saw Saudi and Bahrain exchanges with net purchases of $252.3 million and $23.2 million, respectively. In contrast, Qatar and Oman experienced net selling of $421.0 million and $459.2 million during the first quarter of 2025.
Throughout the quarter, Boursa Kuwait maintained a steady influx of foreign buying. Conversely, both Saudi Arabia and the UAE enjoyed net purchases from foreign investors in the first two months before witnessing net sales in March. Moreover, the Saudi Capital Market Authority (CMA) recently allowed foreign investments in firms listed in Saudi Arabia that own real estate in the holy cities of Makkah and Madinah. “This initiative is designed to attract foreign capital and enhance liquidity for ongoing and future projects,” the authors noted. Similarly, Qatar saw net buying from foreign investors in January 2025, followed by net selling in February and March.
In contrast, Oman reported net selling by foreign investors during the observed quarter. “The Muscat Stock Exchange has introduced new investment initiatives in partnership with various market exchanges, aimed at bolstering liquidity across different markets to stimulate both local and international investment,” the report indicated.
Several key factors influenced the influx of foreign investments in the region, including market trends, IPO activities, geopolitical concerns, the economic stability of individual countries, and fluctuations in crude oil prices. The overall quarterly performance in the equity market showed a lean towards declines, with six out of seven exchanges recording drops during Q1-2025. Uncertainties surrounding US trade policies and projections of a slowdown in the US economy adversely impacted investor sentiment across the region.
The repeated announcements from the US government regarding tariffs on imports, along with responses from its trading partners, affected confidence in global economic growth. “Seasonal selling pressure during the Eid Holidays further contributed to market declines, leading local investors to sell off shares, which were primarily acquired by foreign investors,” the report elaborated.
In terms of month-on-month performance, foreign investors’ net buying peaked in February 2025, amassing $2.4 billion. January recorded net purchases of $833.8 million, while March experienced net selling amounting to $518.4 million. “Historically, foreign trading in GCC-listed stocks has seen declines in just one quarter over the last five years, with the highest net purchases occurring in Q1-2022, totaling $11.0 billion, primarily driven by increased activity in Saudi Arabia and Qatar,” the report stated.
In the Saudi market, domestic investors were net sellers in Q1-2025, totaling SAR 945.6 million, compared to net selling of SAR 4.2 billion in Q4-2024. However, Saudi institutions were net buyers, accumulating SAR 102.8 million, which was offset by net sell trades by retail investors at SAR 1.0 billion. Notably, significant buying activity came from non-GCC foreigners, who made net purchases of SAR 2.4 billion during this quarter, partially counterbalanced by GCC investors’ net selling of SAR 1.5 billion.
GCC investors (excluding Bahrain due to data limitations) also exhibited net selling in Q1-2025, reaching $482.3 million, slightly lower than the net sell trades of $505.3 million recorded in Q4-2024. Among the GCC exchanges, Boursa Kuwait saw the most significant net buying from GCC investors at $56.9 million, followed by Dubai with $12.4 million. Meanwhile, Saudi Arabia, Abu Dhabi, Qatar, and Oman recorded net sales by GCC investors in Q1-2025, partially curtailing overall buying trends among these investors.