Navigating the 2026 Regional Economic Landscape for Executives

The sector likewise dealt with broader macro headwinds, consisting of a more careful policy background in China and worldwide risk-off sentiment driven by geopolitical stress and higher energy costs. Thematic ETFs Struggled for the many part, especially those linked to carbon and high-growth innovation, as assessment pressures and worldwide rate dynamics weighed on efficiency.

The petrochemical ETF substantially outshined. Circulations in Q1 2026 were modest and highly concentrated, showing selective allocation rather than broad market participation. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with just a small number of items bring in brand-new capital. This suggests that financiers were targeting particular direct exposures, while decreasing or turning out of others.

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

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

Q1 2026 revealed some progress connecting to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually impacted belief and costs during the quarter, it has actually driven more volume and interest in regional properties.

Major Trends in the Future Middle East Economy

Regardless of continuous geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, preserving favorable growth momentum over the last few years. While conflicts in the broader region and global economic unpredictability remain a structural restriction, GCC nations have so far limited their influence on domestic economic performance through strong financial positions, policy connection, and continual investment.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted 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 global development relieving to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would put the area 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 danger conditions stay contained and reform momentum holds.

Ways to Leverage GCC Research for 2026 Success

Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden investment in services, infrastructure, and innovation. 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, enhancing credit conditions, and rising investment in technology and AI-related infrastructure.

Public-sector investment and reform stay main to sustaining this trend. Policy procedures focused on drawing in foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play a helpful function in 2026.

The World Bank, on the other hand, jobs 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift towards more positive general conditions.

The IMF's World Economic Outlook (October 2025) tasks global growth alleviating 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 contrast, a 4.44.5 percent GCC expansion 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 fairly high-growth pocketprovided that local danger conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Strategic Planning for Middle East Excellence

Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to rise as federal governments expand financial investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity across 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 facilities.

Public-sector investment and reform remain main to sustaining this trend. Policy steps aimed at drawing in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play an encouraging role in 2026.