Major Shifts in the 2026 GCC Market thumbnail

Major Shifts in the 2026 GCC Market

Published Aug 17, 26
5 min read


Inform method with proof: Usage independent data on market confidence, growth, and client need to guide your strategic direction. Verify investment plans: Guarantee resource allotment and initiatives are backed by trustworthy market insight. Accelerate positive decisions: Equip members of your executive group with clear, actionable insight to reach contract rapidly and take decisive action.

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1 GCC, "HE GCCSG: The FTA between the GCC and the UK is a Major Strategic Chance to Raise Economic Relations to New Horizons," October 20252 GCC, "Joint Declaration on Economic Cooperation In Between the Association of the Southeast Asian Countries (ASEAN) and the Gulf Cooperation Council (GCC)," May 2025 3 IMEC, "India-Middle East-Europe Economic Passage (IMEC) Progress Update," April 20254 WAM, "UAE's CEPA programme strengthens worldwide financial ties with 26 tactical contracts," March 20255 Muscat Daily, "Oman, India set to sign open market pact 'very soon'," September 20256 India Embassy Qatar, "India-Qatar Bilateral Relations," June 20257 Reuters, "Qatar's QIA plans to at least double yearly US investments over next years," May 2025; WAM, "US$ 110 billion in UAE financial investments in Africa position country as world's fourth-largest investor," October 2025; Whitehouse, "Reality Sheet: President Donald J.

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Ways to Leverage Market Research for 2026 Success

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Advanced Planning for Middle East Leadership

Total possessions held broadly steady over the quarter, while trading levels pointed to continued rearranging and as a reaction to geopolitical news rather than a meaningful brand-new capital deployment. Global macro conditions set a challenging background.

The result was a quarter defined by volatility, dispersion, and selective positioning, instead of a clear directional pattern. Oil related assets succeeded for the many part. On the favorable side, in January, the Boreas Absolute High-end ETF released on ADX to add more thematic ETFs. Also in Q1, two more Kraneshares have actually been authorized for launch by the Capital Market Authority (CMA) and will be approved by the Abu Dhabi Stock Market (ADX). The GCC ETF universe comprised 39 ETFs with a total AUM of $9.35 billion (as of Q1 2026). Performance across the market was broadly negative, with just 13 ETFs delivering positive returns compared to 26 in decrease. Performance in Q1 2026 was driven by a narrow group of idiosyncratic winners, rather than broad market strength.

Leading the 2026 GCC Economic Landscape for Leaders

Egypt delivered strong performance in January and February. In spite of a market pullback in March due to the war, both Egypt's market and its ETFs still posted favorable returns for the quarter. The ongoing Middle East dispute and resulting energy shock have reshaped the outlook for emerging market equities between the oil-haves and the oil-have-nots.

The sector also dealt with broader macro headwinds, including a more cautious policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and higher energy costs. Thematic ETFs Struggled for the many part, especially those connected to carbon and high-growth technology, as evaluation pressures and international rate dynamics weighed on efficiency.

Flows in Q1 2026 were modest and extremely focused, reflecting selective allocation rather than broad market participation. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a small number of items bring in brand-new capital.

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Why Does Business Excellence Essential for 2026 Growth?

Trading activity remained steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Many activity appears to have taken location in the secondary market, allowing investors to change positions without substantial main developments or redemptions. While current geopolitical events have actually led to more monetary pressure on GCC nations, the area stays resilient and well capitalized to handle the scenario.

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

Q1 2026 showed some progress relating to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has affected belief and prices during the quarter, it has driven more volume and interest in local assets.

Leveraging Market Research to Effectively Drive Strategic Growth

Regardless of ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, keeping favorable development momentum over the last few years. While disputes in the broader region and international economic uncertainty remain a structural constraint, GCC countries have up until now limited their effect on domestic economic efficiency through strong fiscal positions, policy continuity, and continual investment.

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