RIYADH: The Saudi Exchange recorded net foreign inflows of $1.6 billion in the second quarter of 2026, the highest among Gulf Cooperation Council markets, an analysis by Kamco Invest showed.

Saudi Arabia’s ability to attract foreign capital stands out in a region where most other markets experienced net outflows in the second quarter.

In its latest report, Kamco Invest revealed that the Kingdom was the only market in the GCC to register net foreign buying during the second quarter, while all the other exchanges recorded net selling by foreign investors. 

The report said the key factors affecting foreign investment flows in the region included geopolitical conflicts, disruptions around the Strait of Hormuz that affected oil price movements, global interest rate trends, and seasonal factors such as Eid holidays, which reduced market activity and trading volumes. 

The Saudi Exchange’s solid performance reflects the Kingdom’s ongoing success in drawing global investment, underpinned by robust corporate earnings and economic reforms. The government targets $100 billion in annual foreign direct investment by 2030.

“The quarterly data on trading activity on GCC exchanges showed all the exchanges recorded foreigners as net sellers during the second quarter of 2026, barring Saudi Arabia, which showed foreigners as net buyers to the tune of $1.6 billion during the quarter, partially offsetting the overall net sales,” said Kamco Invest. 

On a monthly basis, Saudi Arabia was the only GCC market with net foreign buying in each month of Q2 2026, while exchanges in Dubai, Abu Dhabi, Qatar, Kuwait, and Oman all posted net selling throughout the quarter, according to Kamco Invest.

Wider GCC picture 

Foreign investors, including institutional and retail investors, turned net sellers across GCC stock markets in the second quarter of 2026, recording net sales of $298.3 million, following net purchases of $1.5 billion in the first quarter, according to Kamco Invest. 

Dubai witnessed the heaviest foreign selling in the second quarter at $641.5 million, followed by Kuwait at $480.3 million, Qatar at $375.4 million, and Abu Dhabi at $187.3 million. 

In Oman, net selling stood at $161.3 million, while Bahrain recorded $3.1 million. 

For the first half of 2026, foreign investors still recorded net buying of $1.2 billion across the GCC, though this represented an 83.1 percent year-on-year decline compared with the first half of 2025. 

Total trading activity 

According to the report, aggregate trading volume across GCC stock markets declined by 21.7 percent quarter on quarter to 64 billion shares in the second quarter. 

Kuwait was the only market to record higher trading volumes, rising 41.9 percent quarter on quarter to 17.2 billion shares. 

Abu Dhabi witnessed the sharpest decline in trading volume, falling 41.8 percent quarter on quarter, followed by Oman at 36.3 percent and Dubai at 34.9 percent. 

Saudi Arabia and Qatar also reported lower trading volumes, declining by 24.3 percent and 18.9 percent, respectively. 

Despite the drop in volumes, aggregate trading value across the GCC increased by 8.8 percent quarter on quarter to $157.7 billion in the second quarter. 

Saudi Arabia recorded a notable increase, with the value of shares traded rising from $77.5 billion in the first quarter of 2026 to $86.4 billion in the second quarter. 

Five Saudi-listed companies ranked among the top 10 most actively traded GCC stocks by value in the second quarter. The aggregate trading value of these top 10 stocks reached $36.2 billion, accounting for 23.1 percent of the total value traded across GCC exchanges. 

Al Rajhi Bank topped the list with $6.9 billion in trading value, followed by Saudi Arabian Oil Co., also known as Saudi Aramco, and Emaar Properties at about $6 billion each. 

The figures reflect the continued divergence between Saudi Arabia and its Gulf peers in attracting foreign portfolio investment. While the Kingdom’s market benefits from structural reforms and strong earnings, other exchanges face headwinds from geopolitical risks and monetary policy tightening. The sharp drop in net buying across the GCC for the first half compared to the previous year suggests volatility in foreign flows may persist.