Navigating the 2026 GCC Economic Environment for Executives

The sector also faced more comprehensive macro headwinds, consisting of a more careful policy background in China and global risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs also struggled for the most part, especially those connected to carbon and high-growth technology, as assessment pressures and worldwide rate characteristics weighed on performance.

Circulations in Q1 2026 were modest and highly concentrated, showing selective allocation rather than broad market involvement. Regardless of weak performance, ETFs taped $27.1 million in net inflows, with just a small number of items drawing in new capital.

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

In January, Boreas released its S&P Global Luxury UCITS ETF, adding a niche thematic exposure focused on global luxury and customer brands. ETFs by the CMA for cross-listing on ADX.

Q1 2026 showed some progress relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and costs throughout the quarter, it has actually driven more volume and interest in regional assets.

How Is Operational Excellence Essential for Future Growth?

Despite ongoing geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, preserving favorable growth momentum over the last few years. While disputes in the broader region and worldwide financial unpredictability remain a structural restraint, GCC nations have actually up until now restricted their impact on domestic financial performance 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 forecasted to increase 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 global development 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 comparison, 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, strengthening the GCC's status as a reasonably high-growth pocketprovided that regional risk conditions stay included and reform momentum holds.

Ways to Utilize Market Research for Success

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 actually continued to rise as governments broaden investment in services, infrastructure, 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, enhancing credit conditions, and rising investment in innovation and AI-related facilities.

Public-sector financial investment and reform remain central to sustaining this pattern. Policy steps focused on drawing in foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play a supportive role in 2026.

The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift toward more positive general conditions.

The IMF's World Economic Outlook (October 2025) tasks global growth easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion 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 risk conditions remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

Improving ROI Through Modern Middle East Market Intelligence

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 governments broaden financial investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity across the GCC is predicted 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 facilities.

Public-sector financial investment and reform remain main to sustaining this trend. Policy steps targeted at attracting foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play an encouraging function in 2026.