Major Trends in the 2026 Middle East Market

The sector likewise dealt with broader macro headwinds, consisting of a more cautious policy background in China and international risk-off belief driven by geopolitical stress and greater energy prices. Thematic ETFs Had a hard time for the many part, especially those connected to carbon and high-growth technology, as valuation pressures and international rate dynamics weighed on efficiency.

The petrochemical ETF significantly surpassed. Circulations in Q1 2026 were modest and extremely focused, showing selective allowance instead of broad market involvement. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with only a small number of items attracting new capital. This indicates that investors were targeting specific exposures, while reducing or rotating out of others.

Trading activity stayed consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have actually occurred in the secondary market, enabling financiers to change positions without substantial main productions or redemptions. While recent geopolitical occasions have actually resulted in more monetary pressure on GCC nations, the area remains resistant and well capitalized to handle the scenario.

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

Q1 2026 showed some progress associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually impacted sentiment and costs throughout the quarter, it has driven more volume and interest in local assets.

Strategic Planning for GCC Success

Regardless of continuous geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, keeping positive development momentum recently. While conflicts in the larger area and international economic unpredictability remain a structural restraint, GCC nations have so far limited their impact on domestic economic performance through strong financial positions, policy continuity, and continual investment.

The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly 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) tasks international growth reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing 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 somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions stay consisted of and reform momentum holds.

Maximizing ROI Using Data-Driven Middle East Market Intelligence

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 rise as governments expand investment in services, infrastructure, and innovation. 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, 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 intended at attracting foreign direct financial investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play an encouraging role in 2026.

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

The IMF's World Economic Outlook (October 2025) tasks worldwide growth relieving 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 growth would put the area 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 relatively high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Driving Strategic Excellence in the GCC

Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments expand financial 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, enhancing credit conditions, and increasing investment in innovation and AI-related facilities.

Public-sector financial investment and reform remain main to sustaining this trend. Policy measures intended at drawing in foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a supportive function in 2026.