Key Shifts in the 2026 Middle East Market

The sector also dealt with more comprehensive macro headwinds, consisting of a more mindful policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and greater energy prices. Thematic ETFs also had a hard time for the a lot of part, especially those connected to carbon and high-growth innovation, as assessment pressures and international rate characteristics weighed on efficiency.

Flows in Q1 2026 were modest and highly focused, showing selective allocation rather than broad market involvement. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items attracting brand-new capital.

Trading activity remained consistent, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have happened in the secondary market, allowing investors to change positions without considerable primary developments or redemptions. While recent geopolitical occasions have actually resulted in more financial pressure on GCC nations, the area remains resilient and well capitalized to handle the situation.

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

Q1 2026 showed some development relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted sentiment and prices throughout the quarter, it has actually driven more volume and interest in regional properties.

How to Utilize GCC Intelligence for Success

Despite continuous geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, preserving favorable growth momentum over the last few years. While conflicts in the broader area and worldwide economic uncertainty stay a structural constraint, GCC countries have up until now restricted their effect on domestic economic performance through strong financial positions, policy continuity, and sustained financial 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 development projected to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) projects international growth alleviating to 3.1 percent in 2026, with advanced 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 position the region 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 risk conditions stay consisted of and reform momentum holds.

Strategic Strategy for Regional Excellence

Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to rise as federal governments expand investment in services, facilities, and technology. According to Oxford Economics, non-energy activity throughout the GCC is forecasted 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 infrastructure.

Public-sector financial investment and reform stay main to sustaining this trend. Policy procedures targeted at attracting foreign direct investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a supportive function in 2026.

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 development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.

The IMF's World Economic Outlook (October 2025) tasks international growth 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 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, enhancing the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Ways to Leverage Market Research for 2026 Success

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

Public-sector financial investment and reform remain central to sustaining this trend. Policy procedures targeted at bring in foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a supportive function in 2026.