Saudi Exchange Leads GCC in Foreign Investment Inflows
The Saudi Exchange attracted $1.6 billion in net foreign inflows as regional markets saw net selling amid geopolitical and economic uncertainty.
The Saudi Exchange (Tadawul) attracted $1.6 billion in net foreign investment during the second quarter of 2026, making it the only stock market in the GCC to record net foreign buying over the period, according to a report by Kamco Invest.
Foreign investors were net buyers on the Saudi Exchange in each month of the quarter, while all other major Gulf markets recorded continuous net selling.
Across the GCC, foreign investors became net sellers of $298.3 million during the second quarter after recording $1.5 billion in net purchases in the first quarter. Dubai saw the largest outflows at $641.5 million, followed by Kuwait ($480.3 million), Qatar ($375.4 million), Abu Dhabi ($187.3 million), Oman ($161.3 million) and Bahrain ($3.1 million).
According to Kamco Invest, the shift in investor sentiment reflected a combination of geopolitical tensions, disruptions around the Strait of Hormuz that affected oil prices, changing expectations for global interest rates and lower trading activity during the Eid holidays.
Trading activity on the Saudi Exchange also increased quarter on quarter, with the total value of shares traded rising to $86.4 billion, up from $77.5 billion in the previous quarter.
Five Saudi-listed companies ranked among the GCC's ten most actively traded stocks by value. Al Rajhi Bank recorded the region's highest trading value at $6.9 billion, while Saudi Aramco also featured among the Gulf's most actively traded companies alongside Dubai-listed Emaar Properties.
Across the region, aggregate trading volumes declined 21.7% quarter on quarter to 64 billion shares, although the overall value of traded shares increased 8.8% to $157.7 billion, reflecting higher trading values despite lower volumes.
