The aim of this study is to empirically investigate relationship between foreign direct investment on stock markets development in Gulf Cooperation Council countries and to examine whether they are related or not. The research sample consists of five countries Bahrain, United Arab Emirates, Qatar, Saudi Arabia and Oman from 2006 until 2015. Panel data analysis techniques were used including panel Phillips-Perron test, panel pairwise Granger causality test and Johansen Fisher Panel Co-integration test. The empirical results show that foreign direct investment and stock market development are integrated at first difference. Moreover, Johansen Fisher Panel Cointegration confirms the long run relationship between FDI and stock market development. On the other hand, the results of Granger causality test show that stock market attracts and promotes the FDI on short run.

The aim of this study is to empirically investigate relationship between foreign direct investment on stock markets development in Gulf Cooperation Council countries and to examine whether they are related or not. The research sample consists of five countries Bahrain, United Arab Emirates, Qatar...