Key Trends in the 2026 GCC Economy

The sector also dealt with wider macro headwinds, including a more cautious policy backdrop in China and global risk-off sentiment driven by geopolitical stress and higher energy costs. Thematic ETFs likewise struggled for the a lot of part, particularly those linked to carbon and high-growth innovation, as evaluation 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. Despite weak performance, ETFs taped $27.1 million in net inflows, with only a little number of items drawing in new capital.

Trading activity remained steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Many activity appears to have actually taken place in the secondary market, making it possible for financiers to adjust positions without considerable main productions or redemptions.

In January, Boreas released its S&P Global Luxury UCITS ETF, adding a niche thematic exposure concentrated on global luxury 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 anticipated to introduce in April pending a last approval from ADX.

Q1 2026 revealed some progress associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and costs during the quarter, it has driven more volume and interest in regional possessions.

Boosting ROI Via Modern GCC Market Analysis

In spite of continuous geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, preserving favorable development momentum in current years. While conflicts in the broader region and global financial unpredictability stay a structural restraint, GCC countries have up until now restricted their effect on domestic economic efficiency through strong financial positions, policy connection, and sustained financial investment.

The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development projected to rise 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) jobs global growth easing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position the area 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 reasonably high-growth pocketprovided that local risk conditions remain included and reform momentum holds.

Expanding Corporate Growth Across Dubai and the GCC

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

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

The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) jobs international development reducing 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 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 fairly high-growth pocketprovided that regional danger conditions remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

Strategic Planning for Regional Excellence

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 continued to rise as governments broaden 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, improving credit conditions, and increasing investment in innovation and AI-related facilities.

Public-sector investment and reform remain central to sustaining this pattern. Policy measures focused on attracting foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play an encouraging function in 2026.