Key Developments in the 2026 GCC Market

The sector likewise faced broader macro headwinds, including a more cautious policy backdrop in China and global risk-off sentiment driven by geopolitical stress and greater energy rates. Thematic ETFs likewise struggled for the most part, especially those connected to carbon and high-growth innovation, as appraisal pressures and international rate characteristics weighed on performance.

Flows in Q1 2026 were modest and highly concentrated, reflecting selective allowance rather than broad market participation. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of items attracting brand-new capital.

Trading activity remained constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. A lot of activity appears to have actually taken location in the secondary market, enabling investors to change positions without significant primary creations or redemptions. While current geopolitical events have led to more monetary pressure on GCC countries, the region stays resistant and well capitalized to handle the scenario.

In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure focused on global high-end and customer brand names. ETFs by the CMA for cross-listing on ADX.

Q1 2026 showed some progress associating with ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected sentiment and costs throughout the quarter, it has actually driven more volume and interest in regional properties.

Ways to Utilize Market Research for 2026 Growth

In spite of ongoing geopolitical stress 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 the last few years. While disputes in the wider region and international economic unpredictability stay a structural constraint, GCC countries have up until now restricted their impact on domestic economic efficiency through strong fiscal positions, policy continuity, and continual financial investment.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) projects international development relieving 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 growth would put the region 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 reasonably high-growth pocketprovided that regional risk conditions remain included and reform momentum holds.

How to Utilize Market Intelligence for Growth

Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout the GCC is predicted 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 investment and reform stay central to sustaining this pattern. Policy procedures aimed at attracting foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play an encouraging function in 2026.

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

The IMF's World Economic Outlook (October 2025) tasks global growth easing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, 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, enhancing the GCC's status as a fairly high-growth pocketprovided that local risk conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

Ways to Leverage Market Research for Success

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 federal governments expand investment in services, facilities, and innovation. 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 rising financial investment in technology and AI-related infrastructure.

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