Gulf Markets Urged to Ease Cross-Border Investment
Exchange executives and specialists at the U Capital Investment Dialogue 2027 in Muscat called for lower barriers to foreign investment across the GCC.
Updated on Nov. 14, 2026 in Investing
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Exchange executives and financial specialists urged Gulf capital markets to cut investment barriers at the U Capital Investment Dialogue 2027 in Muscat. Differing market rules, concentrated ownership, and foreign ownership restrictions complicate cross-border investment across six separate GCC markets.
Why it matters
Relying mainly on domestic participants means competing for a limited pool of liquidity, while the GCC's six markets each impose separate requirements on international institutions. Proposals such as a GCC passport regime and mutual recognition of prospectuses and licences aim to make cross-border investment easier.
Investors from outside the UAE account for 51 per cent of trading on the Dubai Financial Market, and approximately 75 per cent of its new investors come from overseas. It is not stated whether similar overseas participation levels exist on the Muscat Stock Exchange or other GCC bourses.
The details
Speakers at the forum said differences in market rules, concentrated ownership, and obstacles to holding and settling securities complicate cross-border investment. Earlier efforts to unify GCC legislation struggled to accommodate six different systems, and proposals now include bringing ETFs and derivatives to the Muscat Stock Exchange.
Timeline
2027: U Capital Investment Dialogue 2027 held in Muscat, where the calls for reform were made.
Market Dynamics
The push for a GCC passport regime and mutual recognition of prospectuses follows earlier GCC legislative unification efforts that struggled to accommodate six different national systems. Proposals to bring ETFs and derivatives to regional exchanges could add channels for international capital rather than simply redistribute existing business.
If passporting or mutual recognition of prospectuses and licences is adopted, international investors could face fewer hurdles when accessing multiple GCC markets. Changes to foreign ownership rules or investor eligibility would directly affect how individuals and institutions can allocate capital in the region.
The takeaway
Cross-border investment in the Gulf depends on whether regulators can harmonise rules across six markets, so investors should watch for passporting or mutual recognition proposals. Those changes would determine how easily overseas capital can enter regional exchanges.
Further reading
Explore more on Investing to see how cross-border market access shapes portfolio decisions.
Source note: This article includes information reported by Oman Observer.
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Would you invest in stock markets across other Gulf countries if it became easier?
