Ways to Leverage GCC Research for 2026 Growth

The sector also faced more comprehensive macro headwinds, including a more cautious policy background in China and worldwide risk-off sentiment driven by geopolitical stress and higher energy costs. Thematic ETFs likewise struggled for the a lot of part, especially those linked to carbon and high-growth innovation, as valuation pressures and global rate characteristics weighed on efficiency.

The petrochemical ETF significantly surpassed. Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allowance rather than broad market participation. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with only a small number of products drawing in brand-new capital. This shows that investors were targeting particular direct exposures, while minimizing or rotating out of others.

Trading activity remained constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have taken place in the secondary market, enabling financiers to adjust positions without considerable main creations or redemptions.

In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a niche thematic exposure focused on international 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 anticipated to release in April pending a last approval from ADX.

Q1 2026 showed some development relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually impacted belief and rates throughout the quarter, it has driven more volume and interest in local properties.

Strategic Planning for Regional Excellence

Despite continuous geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, keeping favorable growth momentum in the last few years. While conflicts in the larger region and international financial unpredictability stay a structural constraint, GCC countries have so far limited their effect on domestic financial performance through strong financial positions, policy connection, and sustained investment.

The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable total conditions.

The IMF's World Economic Outlook (October 2025) jobs international growth reducing 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 expansion would place the area 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 fairly high-growth pocketprovided that regional threat conditions remain consisted of and reform momentum holds.

Advanced Strategy for Middle East Leadership

Information 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 federal governments broaden financial investment in services, facilities, 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 increasing investment in innovation and AI-related facilities.

Public-sector investment and reform stay main to sustaining this trend. Policy steps focused on attracting foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play a helpful 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 Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable general conditions.

The IMF's World Economic Outlook (October 2025) projects global development easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that regional danger conditions remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

Strategic Strategy for GCC Leadership

Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to rise as governments expand financial 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 increasing financial investment in technology and AI-related infrastructure.

Public-sector financial investment and reform remain main to sustaining this pattern. Policy measures aimed at drawing in foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play a supportive role in 2026.