Strategic Strategy for Regional Leadership

The sector likewise faced more comprehensive macro headwinds, consisting of a more cautious policy backdrop in China and global risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs Had a hard time for the a lot of part, particularly those connected to carbon and high-growth innovation, as appraisal pressures and global rate dynamics weighed on performance.

Flows in Q1 2026 were modest and highly concentrated, reflecting selective allowance rather than broad market participation. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with only a small number of items bring in new capital.

Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Many activity appears to have actually taken location in the secondary market, allowing investors to adjust positions without considerable main creations or redemptions. While recent geopolitical occasions have led to more financial pressure on GCC countries, the area remains resilient and well capitalized to handle the situation.

In January, Boreas released its S&P Global High-end UCITS ETF, adding a niche thematic direct exposure focused on global luxury and consumer brands. ETFs by the CMA for cross-listing on ADX.

Q1 2026 showed some development relating to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted sentiment and costs throughout the quarter, it has driven more volume and interest in regional possessions.

Leading the Upcoming GCC Business Environment for Leaders

Despite continuous geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, maintaining positive development momentum recently. While conflicts in the wider region and global financial unpredictability stay a structural restraint, GCC nations have so far limited their impact on domestic economic performance through strong fiscal 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 towards more favorable total conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide development 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 expansion would put the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that regional risk conditions stay included and reform momentum holds.

Ways to Leverage Market Intelligence for 2026 Success

Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to increase as governments broaden investment in services, facilities, and innovation. 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, enhancing credit conditions, and rising investment in technology and AI-related facilities.

Public-sector investment and reform remain main to sustaining this trend. Policy procedures aimed at attracting foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation 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 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 likewise sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent typically 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 innovative 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 put the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

Emerging Trends in the Future GCC Economy

Information from the GCC Statistical Center reveal 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 forecasted 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 infrastructure.

Public-sector investment and reform stay central to sustaining this pattern. Policy procedures targeted at attracting foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil profits are expected to play an encouraging role in 2026.