Major Developments in the 2026 GCC Market

The sector also faced more comprehensive macro headwinds, including a more cautious policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and higher energy rates. Thematic ETFs Had a hard time for the many part, particularly those connected to carbon and high-growth technology, as valuation pressures and worldwide rate dynamics weighed on performance.

The petrochemical ETF significantly surpassed. Flows in Q1 2026 were modest and highly concentrated, reflecting selective allowance rather than broad market involvement. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a little number of products drawing in new capital. This indicates that investors were targeting specific exposures, while reducing or rotating out of others.

Trading activity remained steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Many activity appears to have actually taken place in the secondary market, allowing investors to change positions without considerable main developments or redemptions.

In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic direct exposure focused on worldwide high-end and consumer brands. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are anticipated to introduce in April pending a last approval from ADX.

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

Expanding Industrial Growth Across Dubai and the GCC

Regardless of ongoing geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, keeping favorable growth momentum in recent years. While disputes in the larger area and global economic uncertainty remain a structural restraint, GCC nations have actually so far limited their influence on domestic economic efficiency through strong fiscal positions, policy connection, and sustained financial investment.

The World Bank, on the other hand, tasks 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, reflecting a shift toward more positive overall conditions.

The IMF's World Economic Outlook (October 2025) jobs global development easing to 3.1 percent in 2026, with advanced 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 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 relatively high-growth pocketprovided that regional threat conditions stay included and reform momentum holds.

Strategic Planning for Middle East Leadership

Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has 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, enhancing credit conditions, and rising investment in innovation and AI-related facilities.

Public-sector financial investment and reform remain main to sustaining this pattern. Policy measures aimed at drawing in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated 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 growth projected 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 international growth easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, 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 relatively high-growth pocketprovided that regional risk conditions remain contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Key Insights Within 2026 Regional Market Analysis Reports

Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to rise as federal 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, improving credit conditions, and increasing investment in technology and AI-related facilities.

Public-sector investment and reform remain main to sustaining this pattern. Policy measures targeted at bring in 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 exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play an encouraging function in 2026.