Comparing Innovative Strategies Against Legacy Frameworks

The sector also dealt with more comprehensive macro headwinds, including a more cautious policy background in China and global risk-off sentiment driven by geopolitical stress and higher energy prices. Thematic ETFs likewise struggled for the most part, particularly those connected to carbon and high-growth innovation, as appraisal pressures and international rate characteristics weighed on performance.

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

Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have taken location in the secondary market, making it possible for investors to change positions without substantial primary creations or redemptions.

In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a niche thematic exposure concentrated on worldwide luxury and consumer 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 expected to launch in April pending a last approval from ADX.

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

How to Leverage Market Intelligence for Success

In spite of continuous geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, preserving favorable development momentum in the last few years. While conflicts in the broader area and worldwide economic uncertainty remain a structural restraint, GCC nations have up until now restricted their influence on domestic financial performance through strong financial positions, policy continuity, and continual investment.

The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift towards more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) projects global development alleviating 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 put the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional risk conditions remain included and reform momentum holds.

Strategic Strategy for Regional 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 rise as federal governments expand investment in services, facilities, 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 financial investment in technology and AI-related infrastructure.

Public-sector investment and reform remain main to sustaining this pattern. Policy steps targeted at attracting foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play a helpful function in 2026.

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable general conditions.

The IMF's World Economic Outlook (October 2025) jobs global growth reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would put the area 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 relatively high-growth pocketprovided that local threat conditions remain contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Managing the Upcoming GCC Business Environment for Executives

Data 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 governments broaden investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across 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 innovation and AI-related infrastructure.

Public-sector investment and reform remain main to sustaining this trend. Policy measures focused on drawing in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the region's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play a helpful role in 2026.