Key Data Within Latest Regional Market Research Reports

The sector also faced wider macro headwinds, consisting of a more careful policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy rates. Thematic ETFs Struggled for the a lot of part, particularly those connected to carbon and high-growth innovation, as assessment pressures and worldwide rate dynamics weighed on performance.

Flows in Q1 2026 were modest and highly focused, showing selective allocation rather than broad market participation. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a little number of products attracting new capital.

Trading activity remained consistent, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have actually taken place in the secondary market, enabling financiers to adjust positions without significant primary creations or redemptions. While recent geopolitical occasions have actually resulted in more monetary pressure on GCC nations, the area stays durable and well capitalized to deal with the circumstance.

In January, Boreas introduced its S&P Global High-end UCITS ETF, including a niche thematic exposure focused on global luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.

Q1 2026 showed some progress relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the dispute has impacted sentiment and costs during the quarter, it has actually driven more volume and interest in local properties.

Why Does Business Excellence Crucial for 2026 Growth?

Regardless of continuous geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, keeping favorable development momentum over the last few years. While disputes in the wider area and global economic uncertainty remain a structural constraint, GCC countries have so far limited their influence on domestic economic performance through strong financial positions, policy connection, and continual investment.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) projects international development easing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional threat conditions stay contained and reform momentum holds.

Why Does Operational Excellence Crucial for 2026 Expansion?

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

Public-sector investment and reform remain central to sustaining this trend. Policy measures aimed at attracting foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are expected to play a supportive role in 2026.

The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) projects worldwide growth relieving to 3.1 percent in 2026, with innovative 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, reinforcing the GCC's status as a relatively high-growth pocketprovided that regional risk conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Achieving Strategic Excellence in the Middle East

Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments expand investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising financial investment in technology and AI-related infrastructure.

Public-sector financial investment and reform remain main to sustaining this pattern. Policy measures intended at bring in foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play an encouraging role in 2026.