Strategic Strategy for Regional Leadership

The sector also dealt with more comprehensive macro headwinds, consisting of a more careful policy backdrop in China and global risk-off belief driven by geopolitical stress and greater energy rates. Thematic ETFs Had a hard time for the a lot of part, particularly those connected to carbon and high-growth innovation, as valuation pressures and worldwide rate dynamics weighed on performance.

The petrochemical ETF substantially outperformed. Circulations in Q1 2026 were modest and highly focused, reflecting selective allotment rather than broad market participation. Regardless of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a little number of products bring in brand-new capital. This suggests that investors were targeting particular direct exposures, while reducing or rotating out of others.

Trading activity remained consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have happened in the secondary market, making it possible for financiers to change positions without significant main productions or redemptions. While current geopolitical occasions have resulted in more monetary pressure on GCC countries, the area remains durable and well capitalized to deal with the circumstance.

In January, Boreas released its S&P Global High-end UCITS ETF, adding a niche thematic exposure focused on international high-end and consumer brand names. ETFs by the CMA for cross-listing on ADX.

Q1 2026 showed some development relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually affected belief and prices throughout the quarter, it has actually driven more volume and interest in local possessions.

Strategic Strategy for GCC Leadership

Regardless of continuous geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, preserving favorable growth momentum in the last few years. While disputes in the wider region and international economic uncertainty remain a structural restraint, GCC nations have so far limited their impact on domestic economic performance through strong fiscal positions, policy continuity, and continual investment.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth 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) jobs global development 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 contrast, a 4.44.5 percent GCC growth would place the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that local danger conditions stay consisted of and reform momentum holds.

Corporate Planning for Regional Success

Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to increase as governments expand investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across 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 innovation and AI-related infrastructure.

Public-sector investment and reform remain main to sustaining this pattern. Policy procedures aimed at attracting foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are expected to play an encouraging role in 2026.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive overall conditions.

The IMF's World Economic Outlook (October 2025) projects international development alleviating to 3.1 percent in 2026, with innovative 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 local danger conditions remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

Why Is Business Excellence Essential for 2026 Growth?

Information 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 federal governments broaden financial investment in services, infrastructure, and innovation. 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, enhancing credit conditions, and rising investment in innovation and AI-related facilities.

Public-sector investment and reform stay main to sustaining this trend. Policy steps intended at drawing in foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are expected to play a supportive role in 2026.