Key Developments in the 2026 GCC Economy

The sector likewise dealt with more comprehensive macro headwinds, consisting of a more mindful policy background in China and international risk-off sentiment driven by geopolitical stress and greater energy prices. Thematic ETFs also struggled for the a lot of part, especially those linked to carbon and high-growth technology, as assessment pressures and international rate characteristics weighed on performance.

The petrochemical ETF substantially surpassed. Circulations in Q1 2026 were modest and highly focused, showing selective allotment instead of broad market involvement. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a small number of products bring in brand-new capital. This shows that investors were targeting specific direct exposures, while lowering or rotating out of others.

Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. A lot of activity appears to have occurred in the secondary market, making it possible for investors to change positions without significant main productions or redemptions. While current geopolitical events have led to more financial pressure on GCC nations, the area stays durable and well capitalized to handle the situation.

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

Q1 2026 showed some progress connecting to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted sentiment and costs during the quarter, it has driven more volume and interest in regional possessions.

How to Utilize GCC Intelligence for Growth

In spite of ongoing geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, keeping favorable growth momentum over the last few years. While disputes in the broader area and worldwide financial uncertainty remain a structural constraint, GCC countries have actually up until now restricted their effect on domestic financial efficiency through strong financial positions, policy connection, and continual investment.

The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating 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 towards more favorable 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 developing economies just above 4 percent. On that contrast, 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, enhancing the GCC's status as a relatively high-growth pocketprovided that local risk conditions remain contained and reform momentum holds.

Ways to Utilize GCC Intelligence for 2026 Growth

Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to increase as governments broaden financial investment in services, facilities, and technology. 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 financial investment and reform remain main to sustaining this pattern. Policy measures focused on bring in foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil rate volatility. While hydrocarbons no longer control the development 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 toward more positive overall conditions.

The IMF's World Economic Outlook (October 2025) tasks international development alleviating 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 position 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 reasonably high-growth pocketprovided that local danger conditions remain consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

How to Leverage Market Research for 2026 Growth

Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to rise as federal governments broaden investment in services, infrastructure, 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 investment and reform stay central to sustaining this pattern. Policy steps intended 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 price volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a helpful function in 2026.