Key Trends in the Future GCC Market

The sector also dealt with more comprehensive macro headwinds, including a more mindful policy backdrop in China and worldwide risk-off sentiment driven by geopolitical tensions and greater energy prices. Thematic ETFs likewise struggled for the a lot of part, especially those connected to carbon and high-growth technology, as appraisal pressures and global rate characteristics weighed on efficiency.

The petrochemical ETF significantly outperformed. Circulations in Q1 2026 were modest and extremely focused, reflecting selective allowance rather than broad market involvement. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with just a little number of products attracting brand-new capital. This shows that investors were targeting specific direct exposures, while reducing or turning out of others.

Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have taken location in the secondary market, enabling financiers to change positions without considerable primary creations or redemptions.

In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused on international 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 dispute has affected belief and prices throughout the quarter, it has actually driven more volume and interest in local possessions.

Ways to Leverage GCC Intelligence for 2026 Growth

Regardless of continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, keeping positive development momentum over the last few years. While conflicts in the larger region and international financial unpredictability remain a structural restraint, GCC countries have up until now restricted their impact on domestic economic performance through strong financial positions, policy continuity, and sustained financial investment.

The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable total conditions.

The IMF's World Economic Outlook (October 2025) tasks international development reducing 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 position 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 fairly high-growth pocketprovided that local risk conditions stay consisted of and reform momentum holds.

How to Utilize Market Intelligence for 2026 Growth

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 continued to rise as federal governments broaden 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 infrastructure.

Public-sector financial investment and reform stay central to sustaining this trend. Policy procedures aimed at drawing in foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play an encouraging function in 2026.

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive total conditions.

The IMF's World Economic Outlook (October 2025) projects international growth easing 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 comparison, a 4.44.5 percent GCC expansion would place the area 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 fairly high-growth pocketprovided that local risk conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Why Does Business Excellence Essential for Future Growth?

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

Public-sector financial investment and reform remain central to sustaining this pattern. Policy steps focused on attracting foreign direct investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are anticipated to play a helpful role in 2026.