Key Shifts in the Future Middle East Market

The sector also dealt with more comprehensive macro headwinds, including a more careful policy background in China and worldwide risk-off belief driven by geopolitical stress and greater energy rates. Thematic ETFs Struggled for the most part, especially those linked to carbon and high-growth innovation, as assessment pressures and international rate dynamics weighed on efficiency.

The petrochemical ETF significantly outperformed. Circulations in Q1 2026 were modest and highly focused, reflecting selective allotment instead of broad market involvement. Despite weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of products drawing in brand-new capital. This suggests that financiers were targeting specific exposures, while lowering or rotating out of others.

Trading activity stayed constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have happened in the secondary market, making it possible for financiers to change positions without significant main developments or redemptions. While current geopolitical events have resulted in more financial pressure on GCC nations, the region stays resistant and well capitalized to handle the circumstance.

In January, Boreas introduced its S&P Global High-end UCITS ETF, including a niche thematic direct exposure concentrated on worldwide 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 introduce in April pending a last approval from ADX.

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

Ways to Leverage GCC Intelligence for 2026 Growth

In spite of ongoing geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, preserving positive growth momentum in the last few years. While conflicts in the wider area and global financial uncertainty stay a structural constraint, GCC nations have so far limited their effect on domestic economic performance through strong financial positions, policy connection, and continual investment.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to rise 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) 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 expansion would put the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that local risk conditions stay contained and reform momentum holds.

Why Is Operational Excellence Essential 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 actually continued to increase as 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, enhancing credit conditions, and rising financial investment in technology and AI-related facilities.

Public-sector investment and reform remain central to sustaining this pattern. Policy steps intended at attracting foreign direct investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play a helpful role in 2026.

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) tasks international development alleviating to 3.1 percent in 2026, with advanced 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 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 danger conditions remain consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Effective Strategies for Optimizing Regional Industrial Success

Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to increase as federal governments broaden financial investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity across the GCC is projected 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 infrastructure.

Public-sector financial investment and reform remain central to sustaining this pattern. Policy steps intended at bring in foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are expected to play a supportive function in 2026.