Navigating the Upcoming GCC Economic Environment for Executives

The sector also dealt with broader macro headwinds, including a more careful policy backdrop in China and worldwide risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs also had a hard time for the a lot of part, especially those linked to carbon and high-growth innovation, as assessment pressures and global rate characteristics weighed on performance.

The petrochemical ETF considerably surpassed. Flows in Q1 2026 were modest and extremely focused, reflecting selective allocation instead of broad market involvement. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a small number of products bring in brand-new capital. This indicates that financiers were targeting specific exposures, while decreasing or rotating out of others.

Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. The majority of activity appears to have actually taken place in the secondary market, enabling financiers to adjust positions without substantial primary creations or redemptions.

In January, Boreas launched its S&P Global Luxury UCITS ETF, including a niche thematic exposure focused on global luxury and consumer brand names. ETFs by the CMA for cross-listing on ADX.

Q1 2026 showed some progress associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has impacted belief and rates throughout the quarter, it has driven more volume and interest in regional possessions.

Ways to Leverage GCC Intelligence for Success

Regardless of continuous geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, maintaining positive growth momentum in recent years. While conflicts in the broader region and global economic unpredictability remain a structural constraint, GCC nations have actually up until now restricted their effect on domestic economic efficiency through strong fiscal positions, policy continuity, and sustained financial investment.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to increase 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 growth reducing 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 contrast, a 4.44.5 percent GCC growth would put 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 fairly high-growth pocketprovided that regional danger conditions stay included and reform momentum holds.

Ways to Leverage Market Intelligence for 2026 Success

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

Public-sector financial investment and reform stay main to sustaining this pattern. Policy procedures focused on attracting foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play a supportive role in 2026.

The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up 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 on average in 2025, reflecting a shift toward more favorable general conditions.

The IMF's World Economic Outlook (October 2025) projects worldwide growth 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 put the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that local danger conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

Essential Strategies for Optimizing Dubai Industrial Growth

Information 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 expand financial investment in services, facilities, and innovation. 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 rising financial investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform stay main to sustaining this trend. Policy procedures intended at drawing in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play a helpful function in 2026.