Emerging Shifts in the 2026 GCC Economy

The sector likewise dealt with wider macro headwinds, including a more mindful policy backdrop in China and international risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs Had a hard time for the most part, particularly those connected to carbon and high-growth innovation, as appraisal pressures and global rate characteristics weighed on performance.

Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allowance rather than broad market involvement. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of products attracting new capital.

Trading activity stayed 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 taken place in the secondary market, enabling financiers to adjust positions without considerable main developments or redemptions.

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

Q1 2026 revealed some development associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted belief and rates during the quarter, it has actually driven more volume and interest in regional properties.

Advanced Strategy for Regional Leadership

Despite ongoing geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, keeping positive development momentum over the last few years. While disputes in the wider area and worldwide financial unpredictability remain a structural constraint, GCC countries have up until now restricted their effect on domestic financial efficiency through strong fiscal positions, policy continuity, and sustained investment.

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable general conditions.

The IMF's World Economic Outlook (October 2025) jobs international development 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 contrast, a 4.44.5 percent GCC growth would position the area 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 local danger conditions remain contained and reform momentum holds.

Comparing Modern Models Versus Traditional Business

Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to rise as governments broaden financial investment in services, facilities, 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, improving credit conditions, and increasing financial investment in innovation and AI-related infrastructure.

Public-sector investment and reform remain central to sustaining this pattern. Policy steps targeted at drawing in foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are expected to play an encouraging role in 2026.

The World Bank, on the other hand, tasks 3.2 percent growth 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 positive general conditions.

The IMF's World Economic Outlook (October 2025) tasks global growth relieving 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 place 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 reasonably high-growth pocketprovided that regional threat conditions remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

Driving Corporate Operations Within Dubai and 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 continued to increase as federal governments broaden investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is forecasted 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 facilities.

Public-sector financial investment and reform stay main to sustaining this pattern. Policy steps targeted at bring in foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play a supportive function in 2026.