Major Developments in the Future Middle East Economy

The sector likewise dealt with wider macro headwinds, consisting of a more cautious policy background in China and worldwide risk-off belief driven by geopolitical stress and higher energy prices. Thematic ETFs likewise had a hard time for the many part, especially those connected to carbon and high-growth technology, as assessment pressures and international rate characteristics weighed on efficiency.

Circulations in Q1 2026 were modest and extremely focused, showing selective allotment rather than broad market participation. Regardless of weak efficiency, ETFs taped $27.1 million in net inflows, with only a little number of items drawing in brand-new capital.

Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Many activity appears to have happened in the secondary market, allowing investors to change positions without substantial primary productions or redemptions. While recent geopolitical events have led to more financial pressure on GCC nations, the area stays resistant and well capitalized to deal with the circumstance.

In January, Boreas launched its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure focused on international high-end and consumer brand names. ETFs by the CMA for cross-listing on ADX.

Q1 2026 showed some progress connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted sentiment and prices throughout the quarter, it has actually driven more volume and interest in local properties.

How to Leverage Market Intelligence for 2026 Growth

In spite of continuous geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, keeping favorable growth momentum in the last few years. While conflicts in the larger region and worldwide economic unpredictability stay a structural restraint, GCC nations have actually up until now limited their effect on domestic financial efficiency through strong financial positions, policy connection, and sustained investment.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to increase 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) projects global growth alleviating to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, 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 relatively high-growth pocketprovided that regional risk conditions stay contained and reform momentum holds.

How to Leverage GCC Intelligence for Growth

Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to rise as federal 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 investment in technology and AI-related infrastructure.

Public-sector investment and reform stay central to sustaining this pattern. Policy measures focused on drawing in foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are expected to play a helpful function in 2026.

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

The IMF's World Economic Outlook (October 2025) jobs worldwide development reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would position the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that local threat conditions remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

Corporate Planning for Middle East Success

Information 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 increase as federal governments broaden financial investment in services, infrastructure, and innovation. 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 rising investment in technology and AI-related facilities.

Public-sector investment and reform stay main to sustaining this pattern. Policy measures targeted at drawing in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play a supportive role in 2026.