Strategic Planning for Middle East Success

The sector also dealt with broader macro headwinds, consisting of a more careful policy backdrop in China and international risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs Struggled for the most part, particularly those linked to carbon and high-growth technology, as valuation pressures and international rate characteristics weighed on performance.

The petrochemical ETF significantly outperformed. Circulations in Q1 2026 were modest and extremely focused, reflecting selective allotment rather than broad market participation. Regardless of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a little number of items attracting new capital. This suggests that investors were targeting particular 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 larger and more liquid ETFs. A lot of activity appears to have actually taken place in the secondary market, enabling investors to change positions without significant main creations or redemptions. While recent geopolitical events have led to more financial pressure on GCC countries, the area remains resilient and well capitalized to handle the circumstance.

In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure focused on international luxury 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 anticipate more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected sentiment and rates throughout the quarter, it has driven more volume and interest in local properties.

How to Leverage Market Intelligence for 2026 Growth

Despite ongoing geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, maintaining positive development momentum in recent years. While disputes in the broader region and global economic unpredictability stay a structural restriction, GCC countries have up until now restricted their effect on domestic financial performance through strong financial positions, policy continuity, and sustained investment.

The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF 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 towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) projects global development relieving 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 place 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 fairly high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.

Strategic Strategy 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 expand financial investment in services, facilities, and technology. 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 increasing investment in technology and AI-related facilities.

Public-sector financial investment and reform stay central to sustaining this pattern. Policy procedures intended at drawing in foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play a supportive function in 2026.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise 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 worldwide growth reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, 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, enhancing 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+

Driving Corporate Operations Across Dubai and the GCC

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 continued to rise as governments expand investment in services, facilities, and technology. 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 innovation and AI-related infrastructure.

Public-sector financial investment and reform stay central to sustaining this trend. Policy measures focused on drawing in 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 cost volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are expected to play an encouraging role in 2026.