Major Trends in the Future GCC Economy

The sector also faced more comprehensive macro headwinds, including a more mindful policy backdrop in China and global risk-off belief driven by geopolitical tensions and greater energy costs. Thematic ETFs also had a hard time for the many part, especially those linked to carbon and high-growth innovation, as appraisal pressures and worldwide rate dynamics weighed on efficiency.

Circulations in Q1 2026 were modest and extremely focused, showing selective allocation rather than broad market involvement. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a small number of products drawing in new capital.

Trading activity remained stable, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have actually taken place in the secondary market, making it possible for investors to adjust positions without substantial main productions or redemptions. While recent geopolitical occasions have led to more financial pressure on GCC countries, the region stays resilient and well capitalized to handle the situation.

In January, Boreas launched its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure concentrated on global high-end and consumer brand names. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are expected to release in April pending a last approval from ADX.

Q1 2026 showed some progress connecting to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted belief and prices during the quarter, it has driven more volume and interest in regional possessions.

Driving Strategic Excellence in Regional Markets

Despite continuous geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, keeping positive development momentum in the last few years. While disputes in the wider area and international economic unpredictability stay a structural constraint, GCC nations have actually so far limited their impact on domestic economic efficiency through strong fiscal positions, policy continuity, and sustained 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 projected 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) tasks international growth relieving 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 region 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 danger conditions remain contained and reform momentum holds.

How Does Operational Excellence Vital for 2026 Growth?

Information from the GCC Statistical Center reveal 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, facilities, 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, improving credit conditions, and increasing investment in technology and AI-related facilities.

Public-sector investment and reform stay central to sustaining this pattern. Policy steps focused on bring in foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play a helpful function in 2026.

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

The IMF's World Economic Outlook (October 2025) jobs international growth alleviating to 3.1 percent in 2026, with sophisticated 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 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 stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

Why Is Operational Excellence Crucial for Future Expansion?

Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to rise as governments expand investment in services, facilities, and innovation. 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 facilities.

Public-sector investment and reform remain central to sustaining this pattern. Policy steps targeted at drawing in foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected to play a supportive role in 2026.