Foreign investors emerged as aggressive net buyers in GCC equity markets during the first quarter of 2026, pumping in $1.47 billion as local retail appetite softened.
According to Kamco Invest, the surge marks a significant reversal from the $313.5 million in net selling recorded in Q4-2025.
The quarterly performance was characterised by a robust start in January and February, followed by a pivot to net selling in March as regional geopolitical tensions, Strait of Hormuz disruptions, and seasonal Ramadan slowdowns weighed on sentiment.
Saudi Arabia dominated regional activity with $2.6bn in net foreign inflows, bolstered by the February 2026 removal of Qualified Foreign Investor (QFI) restrictions. This regulatory shift allowed direct participation by both institutional and individual international investors for the first time. Qatar and Oman also maintained positive momentum, recording foreign inflows of $232.5m and $61m, respectively.
In contrast, other regional markets saw a trend of capital exits. Foreigners were net sellers in Dubai, offloading $654m, while Abu Dhabi and Kuwait recorded net sales of $379.7m and $343.4m, respectively.
While market indices skewed towards declines – with five of the seven exchanges reporting losses – aggregate value traded remained steady at $145bn. Total GCC traded volume dropped 23.4pc quarter-on-quarter to 77.1bn shares. However, Saudi Arabia, Dubai, and Qatar bucked the trend, reporting volume growth of 4.1pc, 1.4pc, and 20pc, respectively. The Saudi Exchange (Tadawul) continued to anchor the region, accounting for 53.5pc of the total regional value traded at $77.5bn.
The banking sector remained the powerhouse of regional liquidity, with traded value surging 13pc to $39.6bn. Al Rajhi Bank topped the list of most active stocks, recording $6.3bn in trades on the Saudi exchange. This was followed by Oula Fuel Marketing in Kuwait at $5.2bn and Aramco at $4.4bn.
The top 10 most active stocks accounted for over 25.6pc of the total GCC turnover. Saudi-listed firms claimed five of the top ten spots, while the UAE contributed four listings from Abu Dhabi and one from Dubai, underscoring the concentration of liquidity in the region’s largest economies.
In Saudi Arabia, a clear divergence emerged between local and international players. Domestic retail investors offloaded around $3.57bn during the quarter. However, this selling pressure was largely absorbed by Saudi institutions and non-GCC foreign investors, who acted as primary liquidity providers amid heightened market volatility in March.
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