Stocks - GCC | Statista Market Forecast

In the GCC, the market capitalization in the Stock market is projected to reach US$4.66tn in 2024.
It is anticipated to exhibit an annual growth rate (CAGR 2024-2025) of 9.12%, leading to a projected total of US$5.08tn by 2025.
The market volume in the GCC's Stock market is expected to amount to US$231.30bn in 2024.
When comparing globally, the highest market capitalization is observed the United States, which is estimated at US$48.8tn in 2024.
Furthermore, in the Stock market within the GCC, the number of trades is projected to reach US$126.50m by 2025.
The GCC stock market is experiencing increased investor optimism, driven by robust economic diversification efforts and heightened interest in technology and renewable energy sectors.

Definition:

The stock market is a crucial element of the global financial system, enabling publicly traded companies to raise capital by issuing shares. These shares are bought and sold either through formal exchanges or over-the-counter (OTC) markets, providing investors with opportunities to trade equity securities.

Structure:

The market contains the following KPIs: the market capitalization, the Buffett indicator, the market volume, the number of trades, the number of listed domestic companies, the distribution of market capitalization. Traded bonds, Traded ETFs, and countries without their domestic stock exchanges are out-of-scope in the stock market

Additional information:

Key players in this market are companies such as New York Stock Exchange (NYSE), Nasdaq, Tokyo Stock Exchange (TSE), Shanghai Stock Exchange (SSE), and London Stock Exchange (LSE).

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Stock exchanges
Over-the-counter market

Traded Bonds
Traded ETFs
Countries without a domestic stock exchange

The stock market plays a crucial role in the functioning of financial markets that facilitates capital formation, investment, and economic growth by allowing companies to raise funds and investors to buy and sell ownership stakes.
The stock market is likely to remain volatile as investors weigh the competing forces of strong corporate earnings and economic growth against the risks of inflation, geopolitical tensions, and elevated valuations.
It is indisputable that the stock market is advancing significantly due to rapid technological developments. The ability for investors to engage in cross-border transactions has notably increased trading volumes in recent days. Additionally, there has been a substantial rise in the participation of individual investors in the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on market capitalization/ market volume/ number of trades/ number of listed domestic companies data within the stock market.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data from Company Insights, World Bank, the Federation of Exchanges as well as stock exchanges, and publicly available databases. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer price index (CPI), total investment (% of GDP), trade (% of GDP), household income, internet penetration, deposit interest rate, lending interest rate, central bank interest rate, unemployment rate, internet penetration and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In the market, we use both the HOLT-damped Trend method and the ARIMA method to forecast future development. The main drivers are GDP per capita, consumer price index (CPI), and central bank interest rate. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Despite geopolitical tensions and a looming recession, financial markets outdid expectations in 2023, with many of the major stock market indices recording strong gains especially throughout the end of the year. Tech companies linked to the development of artificial intelligence soared as enthusiast investors support the industry, which is expected to experience strong growth in the coming decade. The most striking example is the U.S. tech company Nvidia: the firm's share price skyrocketed in 2023, making the third largest company worldwide in the technology sector in terms of market capitalization. In general, all stock market indices ended the year with significant gains, despite fluctuations or many companies underperforming indices throught the year.

With a market capitalization of nearly 30 trillion U.S. dollars, the companies listed on the New York Stock Exchange (NYSE) have a combined market value larger than the GDP of most countries. While there are around 60 major stock exchanges worldwide today, the Amsterdam Stock Exchange (now part of Euronext) is considered the oldest, dating back to 1602. Its establishment marked the beginning of modern stock market trading and has had a lasting impact on the development of global financial markets.