Key Developments in the Future GCC Market

The sector likewise dealt with broader macro headwinds, including a more mindful policy background in China and worldwide risk-off belief driven by geopolitical tensions and higher energy prices. Thematic ETFs also struggled for the many part, particularly those linked to carbon and high-growth innovation, as evaluation pressures and global rate dynamics weighed on efficiency.

Flows in Q1 2026 were modest and highly concentrated, reflecting selective allocation rather than broad market participation. Regardless of weak efficiency, ETFs recorded $27.1 million in net inflows, with only a small number of products drawing in brand-new capital.

Trading activity remained steady, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. A lot of activity appears to have actually happened in the secondary market, allowing investors to change positions without considerable main productions or redemptions. While current geopolitical events have led to more monetary pressure on GCC nations, the region stays durable and well capitalized to deal with the scenario.

In January, Boreas launched its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure focused on worldwide high-end and consumer brand names. ETFs by the CMA for cross-listing on ADX.

Q1 2026 showed some development relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has affected sentiment and prices throughout the quarter, it has driven more volume and interest in local assets.

How to Leverage GCC Research for 2026 Growth

Despite continuous geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, maintaining favorable development momentum over the last few years. While conflicts in the larger area and international economic unpredictability stay a structural restriction, GCC countries have actually up until now limited their effect on domestic financial efficiency through strong financial positions, policy connection, and sustained investment.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) tasks global development relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth would put the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that local threat conditions stay included and reform momentum holds.

Why Does Operational Excellence Crucial for 2026 Expansion?

Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to increase as federal governments broaden financial investment in services, facilities, and technology. According to Oxford Economics, non-energy activity throughout the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising investment in technology and AI-related infrastructure.

Public-sector financial investment and reform stay main to sustaining this pattern. Policy measures intended at attracting foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play a supportive role in 2026.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive total conditions.

The IMF's World Economic Outlook (October 2025) jobs global development easing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would place the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that local threat conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Strategic Planning for Middle East Excellence

Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to rise as governments expand investment in services, facilities, and technology. According to Oxford Economics, non-energy activity throughout the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and increasing financial investment in technology and AI-related infrastructure.

Public-sector financial investment and reform stay main to sustaining this pattern. Policy procedures focused on attracting foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a helpful function in 2026.