Advanced Planning for Middle East Success

The sector also faced wider macro headwinds, consisting of a more cautious policy backdrop in China and international risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs Had a hard time for the most part, particularly those connected to carbon and high-growth innovation, as valuation pressures and international rate dynamics weighed on performance.

Circulations in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market involvement. Regardless of weak efficiency, ETFs recorded $27.1 million in net inflows, with just a small number of products drawing in new capital.

Trading activity remained constant, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have happened in the secondary market, enabling financiers to adjust positions without substantial primary creations or redemptions. While current geopolitical events have actually led to more monetary pressure on GCC nations, the region stays resilient and well capitalized to handle the situation.

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

Q1 2026 showed some development connecting to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually impacted belief and costs during the quarter, it has driven more volume and interest in regional assets.

Ways to Leverage Market Intelligence for Growth

In spite of ongoing geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, maintaining favorable development momentum recently. While disputes in the larger region and worldwide economic uncertainty remain a structural constraint, GCC countries have so far restricted their impact on domestic economic performance through strong fiscal positions, policy continuity, and continual financial investment.

The World Bank, on the other hand, projects 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth forecasted to increase 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) jobs international development easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would place the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.

Why Is Operational Excellence Essential for 2026 Expansion?

Data from the GCC Statistical Center reveal that non-oil sectors already represent 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 throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing investment in technology and AI-related facilities.

Public-sector investment and reform stay central to sustaining this pattern. Policy procedures focused on bring in foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are expected to play an encouraging role in 2026.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to increase 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) tasks international development easing 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 expansion would place 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 local danger conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Crucial Data From Latest Regional Market Research Reports

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

Public-sector investment and reform stay main to sustaining this pattern. Policy steps aimed at attracting foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play a supportive role in 2026.