Advanced Planning for Middle East Excellence

The sector also faced wider macro headwinds, including a more careful policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy costs. Thematic ETFs also had a hard time for the most part, particularly those connected to carbon and high-growth technology, as evaluation pressures and international rate characteristics weighed on efficiency.

Flows in Q1 2026 were modest and highly concentrated, showing selective allowance rather than broad market participation. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with only a small number of products attracting brand-new capital.

Trading activity remained stable, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. The majority of activity appears to have actually occurred in the secondary market, enabling financiers to adjust positions without considerable main developments or redemptions. While current geopolitical events have actually resulted in more financial pressure on GCC nations, the region remains resistant and well capitalized to deal with the scenario.

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

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

Key Developments in the 2026 Middle East Market

Despite ongoing geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, keeping positive growth momentum in recent years. While disputes in the broader area and international economic unpredictability stay a structural constraint, GCC nations have actually so far limited their effect on domestic economic performance through strong fiscal positions, policy connection, and sustained investment.

The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating 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 on average in 2025, reflecting a shift toward more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide growth easing 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 comparison, a 4.44.5 percent GCC expansion would put the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that regional threat conditions stay contained and reform momentum holds.

Comparing Innovative Strategies Against Traditional Frameworks

Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden financial investment in services, facilities, 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, improving credit conditions, and increasing financial investment in technology and AI-related infrastructure.

Public-sector investment and reform remain central to sustaining this pattern. Policy procedures intended at attracting foreign direct financial investment, relieving 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 rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated 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 forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide growth relieving to 3.1 percent in 2026, with sophisticated 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 put the area 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 regional risk conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Ways to Utilize GCC Intelligence for Success

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 actually continued to increase as federal governments broaden investment in services, infrastructure, and innovation. 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 rising investment in technology and AI-related facilities.

Public-sector financial investment and reform stay main to sustaining this trend. Policy measures targeted at bring in foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are expected to play a supportive role in 2026.