Major Developments in the 2026 GCC Economy

The sector also dealt with broader macro headwinds, consisting of a more mindful policy backdrop in China and international risk-off belief driven by geopolitical stress and greater energy costs. Thematic ETFs also struggled for the a lot of part, particularly those linked to carbon and high-growth technology, as appraisal pressures and international rate dynamics weighed on efficiency.

The petrochemical ETF substantially outshined. Circulations in Q1 2026 were modest and extremely focused, showing selective allowance rather than broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with only a little number of items bring in new capital. This suggests that investors were targeting particular direct exposures, while lowering or turning out of others.

Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have happened in the secondary market, making it possible for investors to adjust positions without substantial main developments or redemptions. While current geopolitical events have resulted in more financial pressure on GCC countries, the region stays resistant and well capitalized to deal with the circumstance.

In January, Boreas introduced its S&P Global High-end UCITS ETF, including a specific niche thematic exposure concentrated on global high-end and consumer brand names. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are expected to launch in April pending a last approval from ADX.

Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted sentiment and rates throughout the quarter, it has actually driven more volume and interest in local assets.

Strategic Planning for GCC Success

Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, keeping favorable development momentum in the last few years. While disputes in the larger area and global financial unpredictability remain a structural constraint, GCC nations have up until now limited their effect on domestic economic performance through strong financial positions, policy connection, and sustained investment.

The World Bank, on the other hand, jobs 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) tasks worldwide development 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 expansion would place the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that local risk conditions stay included and reform momentum holds.

How Does Business Excellence Crucial for Future Expansion?

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

Public-sector financial investment and reform stay central to sustaining this pattern. Policy measures focused on bring in foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected to play an encouraging function in 2026.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted 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) jobs global 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 comparison, a 4.44.5 percent GCC growth would position 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 fairly high-growth pocketprovided that regional threat conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

Ways to Utilize Market Research for Growth

Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments expand 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 rising investment in technology and AI-related infrastructure.

Public-sector investment and reform stay central to sustaining this pattern. Policy procedures aimed at bring in foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are expected to play a helpful role in 2026.