Key Trends in the Future Middle East Market

The sector also dealt with broader macro headwinds, consisting of a more mindful policy background in China and worldwide risk-off sentiment driven by geopolitical stress and higher energy costs. Thematic ETFs Had a hard time for the a lot of part, especially those linked to carbon and high-growth technology, as valuation pressures and international rate characteristics weighed on performance.

Circulations in Q1 2026 were modest and extremely concentrated, showing selective allowance rather than broad market involvement. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items attracting brand-new capital.

Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have actually taken location in the secondary market, allowing financiers to change positions without considerable main creations or redemptions. While current geopolitical occasions have actually resulted in more monetary pressure on GCC nations, the region remains resilient and well capitalized to handle the circumstance.

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

Q1 2026 showed some progress associating with 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 costs during the quarter, it has driven more volume and interest in local properties.

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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 resilience, preserving favorable growth momentum in recent years. While conflicts in the larger area and global financial uncertainty remain a structural constraint, GCC nations have so far limited their influence on domestic financial performance through strong fiscal positions, policy connection, and sustained financial investment.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable general conditions.

The IMF's World Economic Outlook (October 2025) jobs international growth relieving to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC growth would position the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a relatively high-growth pocketprovided that regional danger conditions remain included and reform momentum holds.

Ways to Utilize GCC Intelligence for 2026 Growth

Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to increase as 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 innovation and AI-related infrastructure.

Public-sector financial investment and reform remain central to sustaining this pattern. Policy procedures focused on attracting foreign direct financial investment, relieving foreign ownership rules, 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 dominate the growth outlook, oil earnings are anticipated to play a supportive function in 2026.

3.2 percent development in 2025, accelerating 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) projects global growth alleviating 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 position 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 reasonably high-growth pocketprovided that local risk conditions remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

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Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to rise as governments broaden financial investment in services, facilities, 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 financial investment in technology and AI-related facilities.

Public-sector investment and reform remain main to sustaining this trend. Policy procedures targeted at drawing in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play an encouraging role in 2026.