An Analysis of the Factors Affecting the Performance of Stock Markets in the GCC Region

Abstract

This article analyses the factors affecting the performance of stock markets in the Gulf Council Countries (GCC) region. In order to tackle the aim, this study collected data from 3 major economies in the GCC countries (Saudi Arabia Qatar, and UAE) in the period between 2007 and 2020. Multiple regression analysis was used to test the effect of interest rate, inflation, exchange rate and foreign direct investment (FDI) on stock market index. The findings indicated that both exchange rate and FDI have substantially impacted the stock market performance in the three countries within the GCC. However, both interest rate and Inflation has negative effect on the performance of stock markets.

Keywords: stock markets, GCC, FDI, interest rate, inflation, exchange rate.

DOI: 10.7176/EJBM/15-6-01

Publication date:March 31^st 2023