How to Utilize GCC Intelligence for 2026 Growth

The sector likewise dealt with broader macro headwinds, including a more careful policy backdrop in China and international risk-off belief driven by geopolitical tensions and greater energy rates. Thematic ETFs Struggled for the most part, particularly those linked to carbon and high-growth innovation, as assessment pressures and global rate characteristics weighed on efficiency.

The petrochemical ETF considerably outshined. Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allotment rather than broad market involvement. Despite weak performance, ETFs recorded $27.1 million in net inflows, with only a small number of products attracting new capital. This indicates that financiers were targeting specific exposures, while minimizing or turning out of others.

Trading activity stayed stable, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have actually occurred in the secondary market, allowing investors to adjust positions without considerable primary creations or redemptions. While recent geopolitical occasions have actually led to more monetary pressure on GCC countries, the area remains resistant and well capitalized to handle the situation.

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

Q1 2026 revealed some progress connecting to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the conflict has impacted sentiment and costs during the quarter, it has driven more volume and interest in local assets.

Strategic Strategy for Middle East Excellence

Despite ongoing geopolitical stress 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 current years. While conflicts in the larger region and worldwide economic uncertainty stay a structural constraint, GCC countries have actually up until now limited their effect on domestic economic performance through strong financial positions, policy connection, and sustained investment.

The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) projects worldwide growth reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC growth would position 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 reasonably high-growth pocketprovided that regional risk conditions remain consisted of and reform momentum holds.

Essential Findings From Latest Regional Market Analysis Reports

Information 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 rise as federal governments broaden financial investment in services, facilities, and technology. 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 technology and AI-related facilities.

Public-sector financial investment and reform stay central to sustaining this trend. Policy procedures focused on bring in foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play a helpful function in 2026.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase 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) tasks worldwide 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 comparison, a 4.44.5 percent GCC growth would put the region 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 local threat conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

How Does Operational Excellence Vital for Future Growth?

Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments expand investment in services, infrastructure, and technology. 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 technology and AI-related infrastructure.

Public-sector investment and reform remain main to sustaining this pattern. Policy procedures aimed at attracting foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play a supportive role in 2026.