Emerging Developments in the 2026 Middle East Economy

The sector likewise dealt with broader macro headwinds, consisting of a more mindful policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and higher energy costs. Thematic ETFs also had a hard time for the most part, particularly those linked to carbon and high-growth technology, as valuation pressures and global rate dynamics weighed on efficiency.

Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allowance rather than broad market participation. Despite weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of products bring in new capital.

Trading activity remained constant, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. A lot of activity appears to have happened in the secondary market, allowing financiers to change positions without considerable primary creations or redemptions. While current geopolitical events have led to more monetary pressure on GCC nations, the region remains durable and well capitalized to handle the situation.

In January, Boreas released its S&P Global High-end UCITS ETF, adding a niche thematic exposure concentrated on global high-end and consumer brand names. 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 release in April pending a last approval from ADX.

Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected belief and rates throughout the quarter, it has driven more volume and interest in local possessions.

How to Leverage Market Research for Success

Regardless of ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, maintaining favorable growth momentum in the last few years. While conflicts in the larger region and worldwide economic uncertainty remain a structural constraint, GCC countries have actually up until now limited their impact on domestic economic performance through strong financial positions, policy continuity, and sustained investment.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive general conditions.

The IMF's World Economic Outlook (October 2025) projects worldwide growth alleviating 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 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 fairly high-growth pocketprovided that local danger conditions remain contained and reform momentum holds.

Leading the 2026 Regional Economic Landscape for Executives

Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to increase as governments broaden investment in services, infrastructure, 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 innovation and AI-related facilities.

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

The World Bank, on the other hand, jobs 3.2 percent growth 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, showing a shift toward more positive overall conditions.

The IMF's World Economic Outlook (October 2025) projects international development alleviating 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 place 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 fairly high-growth pocketprovided that regional threat conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Achieving Strategic Excellence in the GCC

Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually 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 innovation and AI-related infrastructure.

Public-sector investment and reform stay central to sustaining this pattern. Policy procedures intended at bring in foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play an encouraging role in 2026.