Strategic Strategy for Middle East Success

The sector also faced broader macro headwinds, including a more careful policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and higher energy costs. Thematic ETFs also struggled for the many part, especially those connected to carbon and high-growth technology, as valuation pressures and global rate characteristics weighed on efficiency.

The petrochemical ETF considerably exceeded. Flows in Q1 2026 were modest and highly focused, reflecting selective allocation rather than broad market participation. Despite weak performance, ETFs recorded $27.1 million in net inflows, with only a small number of products attracting brand-new capital. This suggests that financiers were targeting particular exposures, while minimizing or rotating out of others.

Trading activity stayed consistent, 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, enabling financiers to adjust positions without substantial primary productions or redemptions.

In January, Boreas released its S&P Global High-end UCITS ETF, adding a specific niche thematic direct exposure focused on global high-end 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 release in April pending a last approval from ADX.

Q1 2026 revealed some development connecting to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted sentiment and costs throughout the quarter, it has driven more volume and interest in local possessions.

How to Leverage GCC Intelligence for 2026 Growth

Despite continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, maintaining positive growth momentum over the last few years. While disputes in the broader area and worldwide economic unpredictability stay a structural restriction, GCC countries have up until now limited their influence on domestic economic efficiency through strong fiscal positions, policy continuity, and continual investment.

The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift toward more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide growth alleviating 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 growth would place 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 reasonably high-growth pocketprovided that regional danger conditions stay included and reform momentum holds.

Effective Strategies for Optimizing Regional Industrial Success

Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to rise as governments expand investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is predicted 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 facilities.

Public-sector investment and reform remain central to sustaining this trend. Policy steps 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 lower the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play an encouraging role in 2026.

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to increase 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) tasks international development reducing 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 put 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 local threat conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Ways to Leverage GCC Research for Success

Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments broaden 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, improving credit conditions, and rising financial investment in technology and AI-related infrastructure.

Public-sector investment and reform remain central to sustaining this trend. Policy measures focused on attracting foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play a helpful function in 2026.