Emerging Trends in the Future Middle East Economy

The sector likewise faced broader macro headwinds, consisting of a more cautious policy backdrop in China and worldwide risk-off sentiment driven by geopolitical tensions and greater energy prices. Thematic ETFs likewise had a hard time for the many part, particularly those connected to carbon and high-growth technology, as valuation pressures and international rate dynamics weighed on efficiency.

Flows in Q1 2026 were modest and extremely focused, showing selective allowance rather than broad market participation. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a little number of items drawing in new capital.

Trading activity stayed stable, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Many activity appears to have taken place in the secondary market, enabling financiers to adjust positions without substantial primary developments or redemptions.

In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure focused on worldwide luxury and customer brands. ETFs by the CMA for cross-listing on ADX.

Q1 2026 revealed some development associating with ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected belief and rates during the quarter, it has actually driven more volume and interest in local assets.

How Does Operational Excellence Crucial for Future Growth?

Regardless of continuous geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, preserving positive growth momentum over the last few years. While disputes in the broader area and international financial uncertainty stay a structural restriction, GCC nations have up until now limited their influence on domestic economic performance through strong financial positions, policy connection, and sustained financial investment.

The World Bank, on the other hand, projects 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive total conditions.

The IMF's World Economic Outlook (October 2025) tasks 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 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 threat conditions stay included and reform momentum holds.

Corporate Planning for Middle East Excellence

Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments broaden 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 technology and AI-related infrastructure.

Public-sector investment and reform stay central to sustaining this trend. Policy procedures focused on attracting foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a supportive role in 2026.

3.2 percent growth 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 toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) tasks worldwide growth reducing to 3.1 percent in 2026, with sophisticated 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 position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional threat conditions remain contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Essential Insights From Latest GCC Market Research Reports

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 federal governments broaden financial investment in services, facilities, and technology. 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 rising investment in innovation and AI-related facilities.

Public-sector financial investment and reform remain main to sustaining this pattern. Policy measures intended at attracting foreign direct 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 profits are anticipated to play an encouraging role in 2026.