Key Trends in the 2026 Middle East Market

The sector also dealt with broader macro headwinds, including a more mindful policy background in China and worldwide risk-off belief driven by geopolitical stress and higher energy prices. Thematic ETFs also struggled for the many part, especially those connected to carbon and high-growth innovation, as assessment pressures and global rate characteristics weighed on efficiency.

The petrochemical ETF significantly outperformed. Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allocation rather than broad market involvement. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with only a small number of products drawing in brand-new capital. This shows that financiers were targeting specific exposures, while decreasing or turning out of others.

Trading activity stayed 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 taken place in the secondary market, allowing financiers to change positions without considerable primary productions or redemptions. While current geopolitical occasions have actually resulted in more monetary pressure on GCC countries, the area remains durable and well capitalized to deal with the circumstance.

In January, Boreas released its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure concentrated on global high-end 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 expected to launch in April pending a last approval from ADX.

Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected sentiment and prices throughout the quarter, it has actually driven more volume and interest in local possessions.

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Regardless of ongoing geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, preserving favorable development momentum in current years. While conflicts in the larger area and worldwide economic unpredictability remain a structural constraint, GCC nations have so far limited their influence on domestic economic efficiency through strong fiscal positions, policy connection, and sustained financial investment.

The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development predicted 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) tasks worldwide growth easing 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 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 relatively high-growth pocketprovided that regional risk conditions remain consisted of and reform momentum holds.

Emerging Shifts in the 2026 GCC Economy

Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total 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 forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and increasing financial investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform remain main to sustaining this trend. Policy measures intended at attracting foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play an encouraging role in 2026.

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

The IMF's World Economic Outlook (October 2025) tasks international development relieving to 3.1 percent in 2026, with advanced 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 slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that regional threat conditions remain contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Expanding Corporate Growth Across Dubai and the GCC

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 investment in services, facilities, 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, improving credit conditions, and increasing financial investment in technology and AI-related facilities.

Public-sector financial investment and reform stay main to sustaining this pattern. Policy measures targeted at attracting foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play an encouraging role in 2026.