Executive Summary
GCC markets have outperformed the broader emerging market on a longer time frame, with their participation in the MSCI EM index being on the uptrend both in terms of market cap and liquidity. Together, this could be a great story to sell to foreign investors and active managers, who are still heavily underweight on GCC. Most brokerage houses in the GCC are positive on domestic equities, with more stocks getting buy and neutral recommendations for 2025 than sell recommendations. Saudi Arabia will be the key market in focus over the next decade, with massive infrastructure investments anticipated to fulfil their obligations for Vision 2030 and to host major global events. Kuwaiti Cabinet approved a bill to impose 15% domestic minimum top-up tax (DMTT) on multinational entities operating both within Kuwait and internationally from 2025. The move is expected to form the base for diversifying the country’s non-oil revenue base in the years to come.
