Qatar Stock Exchange Tops GCC Markets in Q2 Trading Volume

Photo: Reuters

The Qatar Stock Exchange (QSE) showed the strongest growth in trading volume among the Gulf Cooperation Council (GCC) countries during the second quarter of 2025. This means more shares were bought and sold on the QSE compared to other Gulf markets. Kamco Invest, a well-known regional financial company, shared this information in their recent report. This is an important sign that Qatar’s stock market is becoming more active and attractive to investors.

Foreign Investors Strongly Support Qatar Market

Foreign investors, which include big institutions and individual buyers from outside Qatar, were major buyers in the QSE during April to June 2025. Their total net buying amount was $333.6 million. This shows that people and companies from other countries have trust in the Qatari market and are investing more money there. When foreign investors buy a lot of stocks, it often means they expect the market to perform well and companies to grow.

GCC Markets See Overall Increase in Trading Volume

When looking at the combined data from all GCC stock markets, the total number of shares traded rose significantly. The report showed that 94.73 billion shares were traded in Q2 2025. This was a 9.1% increase compared to the same quarter last year. It also means that trading activity went up compared to the first quarter of 2025, which had 86.8 billion shares traded. This overall growth indicates that investors across the Gulf region are more active in buying and selling shares.

Most GCC Markets Grow Except Saudi Arabia and Bahrain

Most stock markets in the GCC saw growth in the number of shares traded during the second quarter of 2025. However, Saudi Arabia and Bahrain were exceptions. The Saudi stock market’s trading volume fell by 5%, while Bahrain’s market volume dropped sharply by 61.5%. This shows that fewer shares were traded in these two countries during this period. Reasons for this decline could include market conditions, economic factors, or investor behavior specific to those countries.

Qatar Shows the Largest Volume Increase Among GCC Markets

Among all the GCC countries, Qatar’s stock market had the biggest growth in trading volume during Q2 2025. The volume increased by 39.4%, reaching 12.5 billion shares traded compared to 8.9 billion in the first quarter. Dubai also performed well, with a 21% increase, trading 16.3 billion shares in Q2 versus 13.4 billion in Q1. This shows that Qatar and Dubai are becoming more important centers for stock market activity in the Gulf.

Foreign Investors Continue to Buy GCC Stocks

Foreign investors were net buyers in most GCC stock markets during the second quarter. Net buying means that the total purchases made by foreigners were higher than the total sales. In Q2 2025, foreign investors bought $4.2 billion worth of stocks across the GCC. This is higher than the $2.8 billion of net buying in the first quarter. Looking at the first half of 2025, foreign investors bought $7 billion more than they sold. This is a 39.8% increase from the first half of 2024, when net buying was $5 billion. This continued interest from foreign investors is a good sign for the Gulf markets.

Saudi Arabia Sees the Largest Foreign Net Buying

Among the GCC countries, Saudi Arabia recorded the highest amount of net buying by foreign investors during Q2 2025. Foreign investors bought $1.4 billion more stocks than they sold in the Saudi market. This indicates strong confidence in Saudi Arabia’s economy and companies despite the drop in trading volume. The UAE was next in foreign buying, with Abu Dhabi’s stock exchange seeing $1.33 billion in net purchases by foreigners during the same quarter.

Kuwait, Dubai, and Qatar Also See Foreign Buying

Kuwait’s stock market attracted $696.5 million of net buying from foreign investors. Dubai’s market saw net foreign buying of $462 million, and Qatar’s market had net foreign buying of $333.6 million. These figures show that foreign investors are spreading their investments across different GCC markets. The interest in these markets reflects the positive outlook of investors about the region’s economic growth and business opportunities.

Oman and Bahrain Face Foreign Selling Pressure

While many GCC markets saw foreign buying, Oman and Bahrain experienced net selling by foreign investors during Q2 2025. In Oman, foreign investors sold stocks worth $29.6 million. This was a continuation of a trend, as foreigners had sold $459.2 million in the previous quarter. Bahrain also saw net selling by foreign investors, with sales worth $27.9 million in Q2. This suggests that foreign investors may be less confident or more cautious about the markets in Oman and Bahrain during this time.

Monthly Trends Show Consistent Foreign Buying in Some Markets

The report also looked at monthly data for the quarter, except for Bahrain because data was not available. It found that in Kuwait, Dubai, Abu Dhabi, and Qatar, foreign investors consistently bought stocks every month during the quarter. This steady buying suggests ongoing confidence in these markets by foreign investors. It also indicates that these markets are attractive for investment over time, not just for short-term trading.

Mixed Monthly Foreign Investment Trends in Saudi Arabia and Oman

Saudi Arabia saw a different pattern. In April 2025, foreign investors sold more stocks than they bought. But in May and June, foreign investors returned to buying stocks, making the net foreign investment positive for those months. Oman had a different experience. Foreign investors sold stocks in all three months of the quarter, showing less confidence in the Omani market throughout the period.

Key Factors Affecting Foreign Investment Flows

Kamco Invest noted that many factors influence the flow of foreign money into Gulf stock markets. These include overall market trends in the region, new companies offering shares to the public through Initial Public Offerings (IPOs), geopolitical situations that may affect stability, the economic health of each country, and the price of crude oil. Since the Gulf economies are often linked to oil prices, changes in oil prices can have a big impact on investor confidence and market activity.