Fund managers in the Gulf saw investor outflows halve in June from the previous month, while the region continued to witness net redemptions, Egyptian investment bank EFG Hermes said in a research note.
Outflows for Gulf funds halved to $26.1 million with Saudi Arabia, the largest Gulf Arab stock market, accounting for the bulk of the amount.
Middle East Africa-dedicated funds fared worse with a further $112 million outflows in June, EFG said in a note dated July 11. Outflows from Middle East, North Africa (Mena) funds eased to $30.5 million, the note said.
Global emerging market funds increased their exposure to MEA funds to 0.82 per cent of overall exposure, from a historic low of 0.71 per cent in May.
The increase was primarily driven by a rise in exposure to Egypt, the North African country aiming to rebuild itself after a political crisis toppled the government.
Investment funds operating in the unsettled Mena region were forced to refuse redemption requests by clients earlier in the year following a prolonged closure of Egypt's bourse and a slump in stock market values.