Emerging Trends in the Future Middle East Market

The sector also dealt with more comprehensive macro headwinds, consisting of a more mindful policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and higher energy costs. Thematic ETFs Struggled for the many part, especially those linked to carbon and high-growth technology, as evaluation pressures and international rate characteristics weighed on efficiency.

The petrochemical ETF significantly outshined. Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allotment instead of broad market involvement. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a little number of items drawing in new capital. This shows that investors were targeting particular exposures, while minimizing or rotating out of others.

Trading activity stayed steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have taken location in the secondary market, making it possible for financiers to adjust positions without significant main creations or redemptions.

In January, Boreas released its S&P Global High-end UCITS ETF, including a niche thematic direct exposure focused on international luxury and customer brand names. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are expected to introduce in April pending a last approval from ADX.

Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected belief and costs during the quarter, it has actually driven more volume and interest in local assets.

How to Utilize GCC Intelligence for 2026 Growth

In spite of continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, maintaining favorable growth momentum in recent years. While conflicts in the larger region and worldwide economic uncertainty stay a structural constraint, GCC nations have actually so far restricted their effect on domestic financial performance through strong fiscal positions, policy connection, and sustained financial investment.

The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF 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 overall conditions.

The IMF's World Economic Outlook (October 2025) projects worldwide growth reducing 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 place the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions stay consisted of and reform momentum holds.

How Does Operational Excellence Crucial for Future Growth?

Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to increase as governments expand financial investment in services, facilities, and technology. 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 rising investment in innovation and AI-related facilities.

Public-sector financial investment and reform stay main to sustaining this trend. Policy measures focused on attracting foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play an encouraging role in 2026.

The World Bank, on the other hand, jobs 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF 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 toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) jobs international growth relieving to 3.1 percent in 2026, with advanced 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 place 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 fairly high-growth pocketprovided that regional risk conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

How to Utilize Market Intelligence for 2026 Success

Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden investment in services, infrastructure, and innovation. 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, enhancing credit conditions, and increasing financial investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform stay central to sustaining this trend. Policy measures focused on drawing in foreign direct financial investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are expected to play an encouraging function in 2026.