Saudi Arabia leads GCC markets in January: Kamco Invest

03/02/2026 02:58 AST

Saudi Arabia led Gulf equity gains in January as regional markets outperformed most global benchmarks, buoyed by earnings optimism and strong non-oil growth expectations, according to an analysis.

In its latest report, Kamco Invest said Saudi Arabia's exchange recorded a monthly gain of 8.5 percent in January, marking its biggest climb in five years.

The strong performance across most regional exchanges came as Gulf Cooperation Council equity markets continue to attract global capital, supported by solid corporate earnings and ongoing economic reforms.

"The benchmark Tadawul All Share Index closed at 11,382.08 points, up 8.5 percent, marking its strongest monthly performance since February 2022," said Kamco Invest.

It added: "The rally was driven by optimism surrounding earnings in the fourth quarter of 2025, the anticipated opening of the market to foreign investors, and the robust non-oil growth prospects."

In January, Saudi Arabia's Capital Market Authority announced that the Kingdom's stock market would open to all categories of foreign investors from Feb. 1, allowing direct investment in the main market.

To facilitate foreign participation, the CMA introduced several changes, including removing the Qualified Foreign Investor framework - which required a minimum of $500 million in assets under management - and abolishing swap agreements.

The monthly performance chart in Saudi Arabia was led by Almasane Alkobra Mining Co., which rose 32.7 percent, followed by Saudi Arabian Mining Co. and Tourism Enterprise Co., which gained 26.8 percent and 23.4 percent, respectively.

Total trading volume on the Saudi exchange reached 4.9 billion shares in January, representing a 43.3 percent increase from December.

The value of trading stood at SR99.9 billion ($26.63 billion), up 36.2 percent month on month.

According to Kamco Invest, Oman's exchange rose 7.9 percent, followed by Dubai at 6.4 percent.

Boursa Kuwait posted the biggest decline in January at 3.8 percent, while Bahrain edged down 1.1 percent.

"The MSCI GCC index witnessed one of the strongest monthly performances globally with a monthly gain of 7.8 percent during January 2026, the biggest in almost six years since April 2020. The index closed the month at 791.8 points, the highest monthly close in almost 3.5 years," said Kamco Invest.

It added: "The rally was consistent with the broader rally in global Emerging Market indices led by double-digit gains in Korea, Taiwan and Brazil, reflecting strong buying in technology stocks."

At the global level, emerging markets outperformed advanced economies, with the MSCI Emerging Market index rising 8.8 percent.

Markets in the US and Europe remained volatile due to geopolitical tensions and tariff concerns, but staged a late-month rally after sharp declines in the third week, closing January with low single-digit gains.

Arab News