Navigating the Upcoming GCC Economic Environment for Leaders

The sector also faced wider macro headwinds, consisting of a more careful policy background in China and international risk-off sentiment driven by geopolitical stress and greater energy rates. Thematic ETFs likewise struggled for the many part, especially those linked to carbon and high-growth innovation, as valuation pressures and worldwide rate characteristics weighed on efficiency.

Circulations in Q1 2026 were modest and extremely concentrated, showing selective allowance rather than broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with only a small number of products attracting new capital.

Trading activity stayed consistent, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have taken place in the secondary market, making it possible for investors to change positions without significant main creations or redemptions. While current geopolitical occasions have led to more monetary pressure on GCC countries, the area remains durable and well capitalized to handle the situation.

In January, Boreas introduced its S&P Global High-end UCITS ETF, including a specific niche thematic exposure focused on worldwide luxury and customer brands. ETFs by the CMA for cross-listing on ADX.

Q1 2026 revealed some progress connecting to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually affected belief and rates during the quarter, it has driven more volume and interest in regional properties.

How to Leverage Market Intelligence for 2026 Growth

In spite of ongoing geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, maintaining favorable growth momentum recently. While disputes in the larger region and worldwide financial unpredictability remain a structural restriction, GCC nations have up until now limited their influence on domestic financial performance through strong financial positions, policy connection, and sustained investment.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected 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 international growth 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 put the region materially ahead of the world average and a little 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 stay contained and reform momentum holds.

How Does Operational Excellence Vital for Future Growth?

Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall 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 across the GCC is projected 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 main to sustaining this trend. Policy measures focused on drawing in foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil profits are expected to play an encouraging role in 2026.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to increase 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 worldwide development alleviating 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, enhancing the GCC's status as a relatively high-growth pocketprovided that local threat conditions remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

Ways to Utilize GCC Intelligence for 2026 Growth

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

Public-sector financial investment and reform remain main to sustaining this trend. Policy steps targeted at attracting foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the area's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a helpful role in 2026.