Liquidity of GCC Stock Markets 2019

Total liquidity of the seven GCC stock markets increased from US$ 294.1 billion in 2018 to US$ 318.6 billion in 2019, i.e. 8.3% growth. The rise in liquidity did not include all the seven stock markets as liquidity of four stock markets fell while the liquidity of three markets rose with two of these three achieving a significant relative rise, and one which achieved a small but influential rise was the dominant Saudi market in its contribution to the liquidity volume of the 7 markets.

The highest relative increase in liquidity in 2019 went to “Boursa Kuwait” by 92.5% compared  to liquidity in 2018. Its superior

liquidity position supported the rise in its All-Share Market index by 23.7%, the highest in the region. The second highest relative increase in the liquidity level was achieved by the Abu Dhabi market by about 43.6%. However, that significant increase in liquidity did not result in gains for its index except by about 3.3% perhaps due to the influence of general variables, particularly the geopolitics. The third market that achieved an increase in its liquidity is the Saudi market though by a small percentage that did not exceed 4.1%; However, its index rose by about 7.2%, some of which came from “Aramco” with its overwhelming weight and trading in late 2019. It still makes about 75.7% of the seven markets’ liquidity despite its drop in its contribution to them from about 78.8% in 2018.

Liquidity of the other four markets decreased in 2019 and the largest relative decline belonged to the Bahrain stock market whose liquidity lost -12.1% in 2019  but  its  index  achieved  the  second-highest gains in the region by an increase of 20.4% supported by the gains of “Ahli United Bank”. The second-largest decrease in liquidity belonged to the Dubai stock market whose liquidity lost about -11.1% compared to its 2018 liquidity level; its index, however, went against the liquidity trend and achieved the third highest rise by 9.3%. The third highest decrease in liquidity belonged to the Muscat market whose liquidity lost about -6.7% and its index went in the same direction and lost about -7.9%. The Qatari stock market was the fourth market whose   liquidity  decreased  slightly,  by  -1.3% but its index achieved only 1.2% gains. This means that four markets in the region were in agreement in the movement of both liquidity and indicators while three other markets differed in the liquidity path and the indicators’ path, disagreement is often an exception.