The Saudi Exchange was the Gulf’s only stock market to record net foreign buying in the second quarter of 2026. This reinforces investor confidence in the Kingdom’s capital markets despite regional volatility.

Saudi Arabia attracted USD 1.6 billion in net foreign investment into its stock exchange during the second quarter of 2026. According to a report by Kamco Invest, this makes it the only Gulf Cooperation Council market to post net foreign buying during Q2.

Why You Should Care

Global investors are becoming increasingly selective about where they deploy capital in the Middle East. While geopolitical tensions, oil price volatility, and uncertainty around global interest rates prompted foreign investors to pull money from most GCC stock markets, Saudi Arabia continued to attract inflows.

The performance underscores growing confidence in the Kingdom’s capital markets as Vision 2030 reforms deepen, new listings enter the market, and Riyadh works toward attracting USD 100 billion in annual foreign direct investment by 2030. For investors, founders, and businesses, strong foreign participation also supports market liquidity and strengthens Saudi Arabia’s position as the region’s financial hub.

The Details

Saudi Arabia recorded net foreign buying throughout each month of the second quarter, setting it apart from every other major GCC exchange, which experienced continuous net selling.

Foreign investors collectively sold USD 298.3 million worth of GCC equities during the quarter after purchasing USD 1.5 billion in the first three months of the year. Dubai recorded the largest outflows at USD 641.5 million, followed by Kuwait (USD 480.3 million), Qatar (USD 375.4 million), Abu Dhabi (USD 187.3 million), Oman (USD 161.3 million), and Bahrain (USD 3.1 million).

Kamco Invest attributed the shift in investor sentiment to several factors, including geopolitical conflicts, disruptions around the Strait of Hormuz that influenced oil prices, changing global interest rate expectations, and lower trading activity during the Eid holidays.

Although trading volumes declined across most GCC exchanges, Saudi Arabia continued to attract capital. The value of shares traded on the Saudi Exchange increased to USD 86.4 billion during the quarter, up from USD 77.5 billion in the previous quarter.

Five Saudi-listed companies also ranked among the GCC’s ten most actively traded stocks by value. Al Rajhi Bank led the region with USD 6.9 billion in traded shares, while Saudi Aramco remained one of the Gulf’s most actively traded companies alongside Dubai-listed Emaar Properties.

Across the GCC, aggregate trading volumes fell 21.7% quarter on quarter to 64 billion shares, although the overall value of shares traded increased 8.8% to USD 157.7 billion, reflecting continued investor focus on larger, more liquid stocks.

The Ripple

Saudi Arabia’s ability to attract foreign investors while neighboring exchanges experienced outflows highlights a widening gap in regional capital market performance

. Stronger liquidity and sustained international participation could support future IPOs, improve fundraising conditions for listed companies, and further strengthen Riyadh’s ambition to become the Middle East’s leading financial center. The trend also places additional pressure on other GCC exchanges competing to attract global institutional investors.

What to Watch

The key question is whether Saudi Arabia can sustain foreign inflows through the second half of 2026. If geopolitical tensions ease and global interest rates begin to decline, international investors may increase their exposure to Gulf equities. Whether Saudi Arabia continues to outperform regional peers will be an important indicator of how durable investor confidence in the Kingdom’s economic transformation has become.