Emerging Developments in the Future Middle East Market

The sector also dealt with broader macro headwinds, consisting of a more cautious policy background in China and international risk-off sentiment driven by geopolitical stress and higher energy prices. Thematic ETFs also 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 efficiency.

The petrochemical ETF significantly outperformed. Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allocation instead of broad market participation. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a small number of items bring in new capital. This indicates that financiers were targeting particular direct exposures, while lowering or turning out of others.

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 occurred in the secondary market, making it possible for investors to change positions without considerable primary creations or redemptions. While current geopolitical events have resulted in more monetary pressure on GCC nations, the area stays durable and well capitalized to deal with the situation.

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

Q1 2026 showed some development associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has impacted sentiment and prices during the quarter, it has driven more volume and interest in regional assets.

How Does Operational Excellence Crucial for Future Expansion?

Despite ongoing geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, preserving positive development momentum recently. While disputes in the larger region and global financial uncertainty stay a structural restraint, GCC nations have actually so far limited their impact on domestic financial efficiency through strong financial positions, policy connection, and continual 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, reflecting a shift toward more positive total conditions.

The IMF's World Economic Outlook (October 2025) projects international development easing to 3.1 percent in 2026, with sophisticated 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 region 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 fairly high-growth pocketprovided that regional danger conditions remain consisted of and reform momentum holds.

How Is Operational Excellence Essential for Future Expansion?

Data 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 increase as federal governments expand investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across 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 facilities.

Public-sector investment and reform stay main to sustaining this pattern. Policy procedures focused on 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 lower the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play a supportive function in 2026.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development 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) jobs worldwide growth easing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing 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 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 threat conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Ways to Utilize GCC Research for 2026 Success

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 actually continued to increase as governments broaden financial investment in services, infrastructure, 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, improving credit conditions, and rising investment in technology and AI-related facilities.

Public-sector investment and reform remain central to sustaining this pattern. Policy measures targeted at attracting foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a supportive function in 2026.