The Reality and Trends of the Overall Performance of Indirect Foreign Investment in the Arab Stock Markets: An Analytical Study

 
   The current study aimed to identify the emergence of Arab stock markets, their most important characteristics and challenges, and to analyze the reality and developments of the overall performance of indirect foreign investment in them during the period (2005-2020). Given certain characteristics, some of which are favorable, such as: adhering to a reform-developmental approach in Arab stock markets, it was demonstrated using the inductive approach (represented by the descriptive analysis tool) that there is a significant development in the financing role of Arab stock markets as an effective means of supporting and financing economic development goals in the Arab region. There are now more businesses registered on Arab stock exchanges. The tiny size of the Arab stock markets, the fall in financial depth ratios, and the lack of transparency and disclosure are only a few of the other unfavorable factors. The study also revealed that the value of indirect foreign investment, as measured by net portfolio investments, fluctuated significantly from one year to the next in the Arab region due to a number of issues, the most significant of which are: high levels of corruption, weak family business tendencies to become publicly held companies, low savings rates, weak stock turnover rates and lack of liquidity .High levels of corruption, a poor inclination for family firms to become publicly traded enterprises, a lack of or a lackluster degree of Arab economic and financial integration, and a low level of investor awareness on Arab stock exchanges are all factors.