Boosting ROI Using Advanced Middle East Market Intelligence

The sector likewise dealt with more comprehensive macro headwinds, consisting of a more cautious policy backdrop in China and worldwide risk-off belief driven by geopolitical tensions and higher energy costs. Thematic ETFs likewise had a hard time for the many part, especially those connected to carbon and high-growth innovation, as appraisal pressures and international rate characteristics weighed on performance.

The petrochemical ETF considerably surpassed. Flows in Q1 2026 were modest and extremely focused, showing selective allowance rather than broad market involvement. In spite of weak performance, ETFs taped $27.1 million in net inflows, with just a small number of products attracting brand-new capital. This indicates that financiers were targeting specific exposures, while lowering or turning out of others.

Trading activity remained constant, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. A lot of activity appears to have taken place in the secondary market, making it possible for investors to change positions without considerable primary productions or redemptions.

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

Q1 2026 showed some development relating to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected belief and rates throughout the quarter, it has driven more volume and interest in regional properties.

Why Does Operational Excellence Crucial for 2026 Growth?

In spite of continuous geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, keeping favorable development momentum over the last few years. While disputes in the broader area and global economic uncertainty stay a structural restriction, GCC nations have actually up until now restricted their influence on domestic economic performance through strong fiscal positions, policy continuity, and sustained investment.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development 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) tasks worldwide growth relieving 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 expansion would put the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that regional risk conditions stay consisted of and reform momentum holds.

Key Findings Within 2026 Regional Market Research Reports

Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments expand investment in services, infrastructure, and innovation. 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 increasing financial investment in innovation and AI-related facilities.

Public-sector financial investment and reform stay central to sustaining this trend. Policy steps intended at bring in foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a helpful 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 similarly sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable total conditions.

The IMF's World Economic Outlook (October 2025) projects global growth relieving to 3.1 percent in 2026, with sophisticated 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 region 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 reasonably high-growth pocketprovided that regional threat conditions remain contained and reform momentum holds.

ANSR July GCC PRs 50DR+

How Is Business Excellence Essential for 2026 Growth?

Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments expand financial investment in services, infrastructure, 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, enhancing credit conditions, and increasing financial investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform stay central to sustaining this trend. Policy steps aimed at drawing in 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 region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a helpful role in 2026.