Key Shifts in the Future GCC Market

The sector likewise dealt with more comprehensive macro headwinds, consisting of a more cautious policy background in China and worldwide risk-off belief driven by geopolitical tensions and higher energy rates. Thematic ETFs likewise struggled for the many part, particularly those connected to carbon and high-growth technology, as valuation pressures and global rate dynamics weighed on performance.

The petrochemical ETF considerably outperformed. Flows in Q1 2026 were modest and highly focused, showing selective allowance rather than broad market participation. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with just a little number of items bring in brand-new capital. This indicates that investors were targeting particular exposures, while reducing or turning out of others.

Trading activity stayed stable, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have actually taken place in the secondary market, enabling financiers to change positions without significant primary developments or redemptions.

In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused 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 final approval from 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 dispute has impacted sentiment and costs during the quarter, it has driven more volume and interest in local possessions.

Strategic Strategy for Regional Leadership

In spite of ongoing geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, preserving positive development momentum in recent years. While conflicts in the larger area and worldwide economic uncertainty stay a structural constraint, GCC countries have actually up until now limited their effect on domestic economic performance through strong fiscal positions, policy connection, and continual financial investment.

The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable total conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide growth 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 put the area 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 threat conditions stay included and reform momentum holds.

How to Leverage GCC Intelligence for 2026 Success

Information 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 rise as federal governments expand investment in services, infrastructure, 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 increasing investment in technology and AI-related facilities.

Public-sector financial investment and reform stay main to sustaining this pattern. Policy measures focused on drawing in foreign direct investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's exposure to oil cost volatility. While hydrocarbons no longer control the development 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 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) jobs worldwide development reducing 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 contrast, 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, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Corporate Planning for Regional Excellence

Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to rise as governments expand 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 rising financial investment in technology and AI-related infrastructure.

Public-sector financial investment and reform stay central to sustaining this pattern. Policy steps aimed at drawing in foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play a supportive role in 2026.