Emerging Trends in the Future GCC Market

The sector also dealt with wider macro headwinds, consisting of a more cautious policy backdrop in China and worldwide risk-off sentiment driven by geopolitical tensions and greater energy prices. Thematic ETFs Had a hard time for the most part, especially those linked to carbon and high-growth technology, as assessment pressures and worldwide rate characteristics weighed on performance.

Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allowance rather than broad market involvement. Regardless of weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of items bring in brand-new capital.

Trading activity remained constant, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have occurred in the secondary market, allowing investors to change positions without considerable main productions or redemptions. While current geopolitical events have resulted in more financial pressure on GCC countries, the region remains resistant and well capitalized to handle the scenario.

In January, Boreas launched its S&P Global Luxury UCITS ETF, including a niche thematic exposure focused on worldwide luxury and consumer brands. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are anticipated to introduce in April pending a final approval from ADX.

Q1 2026 revealed some development relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected belief and prices during the quarter, it has actually driven more volume and interest in local assets.

Ways to Leverage Market Research for Success

Despite ongoing geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, maintaining favorable growth momentum in the last few years. While conflicts in the wider region and international financial unpredictability remain a structural restriction, GCC nations have actually up until now restricted their influence on domestic financial performance through strong fiscal positions, policy continuity, and sustained investment.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. 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 toward more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) projects global development easing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would place the region 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 fairly high-growth pocketprovided that local risk conditions stay consisted of and reform momentum holds.

Ways to Leverage GCC Intelligence for Growth

Information 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 technology. 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 increasing investment in technology and AI-related facilities.

Public-sector investment and reform stay central to sustaining this pattern. Policy measures targeted at drawing in foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are expected to play a helpful role in 2026.

3.2 percent growth in 2025, speeding up 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, showing a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) projects international growth relieving 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 somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that local risk conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Why Does Operational Excellence Crucial for 2026 Expansion?

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 continued to increase as governments broaden financial investment in services, infrastructure, and innovation. 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, enhancing credit conditions, and increasing investment in innovation and AI-related infrastructure.

Public-sector investment and reform remain main to sustaining this pattern. Policy measures focused on drawing in foreign direct investment, reducing foreign ownership guidelines, expanding 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 development outlook, oil revenues are anticipated to play an encouraging function in 2026.