Essential Insights Within Latest Regional Market Analysis Reports

The sector also faced more comprehensive macro headwinds, consisting of a more cautious policy background in China and international risk-off belief driven by geopolitical stress and greater energy costs. Thematic ETFs Struggled for the many part, especially those connected to carbon and high-growth technology, as appraisal pressures and global rate characteristics weighed on performance.

Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allowance rather than broad market involvement. Regardless of weak performance, ETFs taped $27.1 million in net inflows, with just a little number of products bring in brand-new capital.

Trading activity stayed consistent, 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 taken place in the secondary market, enabling investors to adjust positions without significant primary developments or redemptions. While current geopolitical events have led to more monetary 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, adding a specific niche thematic exposure focused on international luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.

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

Advanced Planning for Middle East Excellence

Regardless of ongoing geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, maintaining positive development momentum in the last few years. While disputes in the wider region and global economic uncertainty stay a structural restriction, GCC nations have so far limited their effect on domestic economic performance through strong financial positions, policy continuity, and sustained financial investment.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase 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 worldwide development 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 contrast, a 4.44.5 percent GCC expansion would put the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that local danger conditions remain included and reform momentum holds.

Key Trends in the Future Middle East Economy

Information 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 increase as federal governments expand financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising financial investment in innovation and AI-related facilities.

Public-sector financial investment and reform remain main to sustaining this pattern. Policy steps intended at drawing in foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play a helpful role in 2026.

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) jobs global growth alleviating to 3.1 percent in 2026, with sophisticated 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 put 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 fairly high-growth pocketprovided that local threat conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Advanced Planning for Middle East Leadership

Data from the GCC Statistical Center show that non-oil sectors already 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 projected to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and increasing financial investment in innovation and AI-related facilities.

Public-sector investment and reform stay central to sustaining this trend. Policy measures aimed at attracting foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play a supportive role in 2026.