Emerging Developments in the 2026 Middle East Market

The sector also dealt with more comprehensive macro headwinds, including a more mindful policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and greater energy prices. Thematic ETFs likewise had a hard time for the a lot of part, especially those connected to carbon and high-growth technology, as appraisal pressures and global rate characteristics weighed on efficiency.

The petrochemical ETF substantially exceeded. Circulations in Q1 2026 were modest and highly focused, showing selective allocation instead of broad market involvement. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with only a small number of items drawing in new capital. This shows that investors were targeting specific direct exposures, while reducing or turning out of others.

Trading activity stayed steady, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually taken place in the secondary market, allowing investors to adjust positions without considerable main productions or redemptions.

In January, Boreas released its S&P Global High-end UCITS ETF, adding a specific niche thematic direct exposure focused on global luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.

Q1 2026 revealed some development connecting to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted sentiment and rates during the quarter, it has driven more volume and interest in regional assets.

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In spite of continuous geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, preserving favorable development momentum over the last few years. While disputes in the broader area and international financial uncertainty stay a structural restriction, GCC nations have actually so far limited their effect on domestic financial efficiency through strong fiscal positions, policy connection, and sustained financial investment.

3.2 percent growth 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, showing a shift towards more favorable overall conditions.

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

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Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to increase as governments broaden financial investment in services, facilities, 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, enhancing credit conditions, and rising financial investment in technology and AI-related facilities.

Public-sector investment and reform stay main to sustaining this trend. Policy procedures intended at bring in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play an encouraging function in 2026.

The World Bank, on the other hand, jobs 3.2 percent development 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 positive overall 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 growth would put 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 relatively high-growth pocketprovided that regional threat conditions remain consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

How to Leverage GCC Intelligence for 2026 Success

Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to rise as governments expand financial investment in services, facilities, and technology. 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 technology and AI-related infrastructure.

Public-sector investment and reform remain central to sustaining this trend. Policy procedures targeted at attracting foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play an encouraging function in 2026.