Key Insights Within 2026 GCC Market Analysis Reports

The sector likewise dealt with more comprehensive macro headwinds, consisting of a more cautious policy backdrop in China and worldwide risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs also had a hard time for the most part, particularly those linked to carbon and high-growth innovation, as assessment pressures and global rate characteristics weighed on performance.

Flows in Q1 2026 were modest and highly focused, reflecting selective allotment rather than broad market involvement. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with only a little number of items bring in brand-new capital.

Trading activity remained steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. A lot of activity appears to have happened in the secondary market, allowing financiers to adjust positions without significant main creations or redemptions. While current geopolitical events have actually led to more financial pressure on GCC nations, the region remains resilient and well capitalized to handle the situation.

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

Q1 2026 showed some progress associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted sentiment and costs throughout the quarter, it has actually driven more volume and interest in regional properties.

How Does Business Excellence Essential 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 show resilience, keeping positive development momentum in the last few years. While disputes in the larger region and worldwide economic uncertainty stay a structural restriction, GCC countries have actually up until now limited their effect on domestic financial performance through strong financial positions, policy continuity, and continual financial investment.

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

The IMF's World Economic Outlook (October 2025) tasks global development alleviating 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 contrast, a 4.44.5 percent GCC expansion would position the area 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 reasonably high-growth pocketprovided that regional risk conditions remain included and reform momentum holds.

Advanced Strategy for Regional Success

Data 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 broaden financial investment in services, facilities, 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 technology and AI-related facilities.

Public-sector financial investment and reform stay central to sustaining this trend. Policy procedures targeted at bring in foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the region's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated to play a helpful function 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 likewise sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive overall conditions.

The IMF's World Economic Outlook (October 2025) projects global development reducing 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 contrast, a 4.44.5 percent GCC expansion would position 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 reasonably high-growth pocketprovided that local threat conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

Corporate Strategy for Middle East Leadership

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

Public-sector financial investment and reform remain central to sustaining this trend. Policy procedures targeted at attracting foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a supportive function in 2026.