Key Developments in the Future Middle East Market

The sector also dealt with wider macro headwinds, including a more mindful policy background in China and global risk-off belief driven by geopolitical stress and higher energy rates. Thematic ETFs Had a hard time for the a lot of part, especially those linked to carbon and high-growth innovation, as evaluation pressures and worldwide rate characteristics weighed on efficiency.

The petrochemical ETF considerably surpassed. Flows in Q1 2026 were modest and highly concentrated, showing selective allocation instead of broad market involvement. Despite weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of items attracting brand-new capital. This suggests that financiers were targeting specific direct exposures, while minimizing or rotating out of others.

Trading activity stayed stable, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have taken place in the secondary market, making it possible for financiers to change positions without considerable primary productions or redemptions. While current geopolitical events have led to more monetary pressure on GCC nations, the region stays durable and well capitalized to handle the circumstance.

In January, Boreas released its S&P Global Luxury UCITS ETF, adding a specific niche thematic exposure focused on international luxury and consumer brands. ETFs by the CMA for cross-listing on ADX.

Q1 2026 showed some development associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually impacted belief and rates during the quarter, it has driven more volume and interest in regional properties.

Strategic Strategy for Middle East Excellence

Despite continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, maintaining favorable growth momentum in recent years. While disputes in the broader area and international financial uncertainty stay a structural restriction, GCC countries have up until now limited their influence on domestic financial efficiency through strong fiscal 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 projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive total conditions.

The IMF's World Economic Outlook (October 2025) tasks global development reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would put the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that local danger conditions stay consisted of and reform momentum holds.

Essential Data Within 2026 GCC Market Analysis Reports

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

Public-sector financial investment and reform remain central to sustaining this pattern. Policy steps focused on attracting foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a supportive function in 2026.

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

The IMF's World Economic Outlook (October 2025) jobs international growth reducing to 3.1 percent in 2026, with sophisticated 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 put the region 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 regional threat conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

How to Leverage GCC Intelligence for 2026 Growth

Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to rise as federal governments expand investment in services, facilities, and technology. 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 rising financial investment in innovation and AI-related infrastructure.

Public-sector investment and reform remain central to sustaining this pattern. Policy procedures targeted at bring in foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play a helpful function in 2026.