Major Trends in the 2026 GCC Economy

The sector likewise faced broader macro headwinds, including a more careful policy backdrop in China and international risk-off sentiment driven by geopolitical stress and higher energy prices. Thematic ETFs likewise had a hard time for the most part, especially those linked to carbon and high-growth innovation, as valuation pressures and international rate dynamics weighed on performance.

The petrochemical ETF significantly outperformed. Flows in Q1 2026 were modest and highly focused, reflecting selective allotment rather than broad market participation. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of items attracting brand-new capital. This indicates that financiers were targeting specific direct exposures, while minimizing or turning out of others.

Trading activity remained constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have taken place in the secondary market, enabling financiers to adjust positions without considerable primary developments or redemptions.

In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure focused on global high-end and customer brands. 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 launch in April pending a last approval from ADX.

Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and prices throughout the quarter, it has driven more volume and interest in local possessions.

How Is Operational Excellence Essential for 2026 Growth?

Despite continuous geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, keeping positive development momentum in the last few years. While disputes in the broader area and international financial uncertainty remain a structural constraint, GCC countries have so far limited their effect on domestic financial efficiency through strong fiscal positions, policy continuity, and continual investment.

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

The IMF's World Economic Outlook (October 2025) projects worldwide development alleviating to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies simply 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 danger conditions remain contained and reform momentum holds.

Ways to Leverage GCC Research for Success

Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to rise as federal governments broaden financial investment in services, infrastructure, 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 innovation and AI-related facilities.

Public-sector financial investment and reform remain central to sustaining this trend. Policy measures targeted at drawing in foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play a helpful role in 2026.

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, reflecting a shift towards more favorable total conditions.

The IMF's World Economic Outlook (October 2025) projects global development 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 position the area 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 relatively high-growth pocketprovided that local risk conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

How to Leverage Market Research for 2026 Success

Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments expand financial investment in services, infrastructure, 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, improving credit conditions, and rising investment in technology and AI-related infrastructure.

Public-sector financial investment and reform remain main to sustaining this trend. Policy procedures focused on attracting foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play a supportive role in 2026.