Amidst escalating geopolitical tensions and rising interest rates in the Middle East, the GCC witnessed a downturn in foreign capital net inflows in April. Nevertheless, the UAE demonstrated resilience by recording foreign capital net inflows of $680.4 million in May, surpassing other countries in the region.

According to figures from the Dubai-based advisor firm Iridium, despite April’s net outflow of $48.6 million, the UAE’s year-to-date inflow chart received a significant boost, totaling $1.67 billion in foreign capital contributions.

Abu Dhabi led in net foreign capital inflows in May with $686 million, marking a stark improvement from April’s -$19 million. Meanwhile, Dubai continued to experience net outflows, recording -$30 million compared to the previous month.

In year-to-date figures, Abu Dhabi sustained its lead with $1.344 billion in net inflows, followed by Dubai in the region with $323 million. Saudi Arabia secured third place with $224 million in net inflows. Kuwait recorded net inflows totaling $190 million, whereas Qatar showed net outflows of -$125 million.

In May, the GCC equity markets saw a positive trend in foreign capital flows, recording a net inflow of $616.7 million. Among the GCC Emerging Markets — Kuwait, Qatar, Saudi Arabia, and the UAE — there was a combined higher net inflow of $636.2 million during the same period.