Corporate Strategy for Regional Success

The sector likewise faced broader macro headwinds, consisting of a more mindful policy backdrop in China and international risk-off belief driven by geopolitical tensions and greater energy costs. Thematic ETFs Had a hard time for the a lot of part, particularly those linked to carbon and high-growth technology, as appraisal pressures and international rate characteristics weighed on performance.

The petrochemical ETF substantially surpassed. Flows in Q1 2026 were modest and highly concentrated, showing selective allotment rather than broad market participation. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a small number of products bring in new capital. This shows that investors were targeting particular direct exposures, while lowering or turning out of others.

Trading activity remained consistent, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have taken location in the secondary market, enabling investors to adjust positions without substantial main creations or redemptions.

In January, Boreas released its S&P Global High-end UCITS ETF, including a niche thematic direct exposure focused on worldwide luxury and consumer brand names. 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 final approval from ADX.

Q1 2026 showed some progress relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted sentiment and costs during the quarter, it has driven more volume and interest in local properties.

Strategic Planning for Regional Leadership

Despite ongoing geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, preserving favorable development momentum in recent years. While disputes in the larger region and global financial uncertainty stay a structural restriction, GCC nations have actually up until now restricted their effect on domestic financial efficiency through strong fiscal positions, policy connection, and sustained investment.

The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift towards more favorable general conditions.

The IMF's World Economic Outlook (October 2025) jobs international development alleviating to 3.1 percent in 2026, with sophisticated 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 position the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that local threat conditions remain included and reform momentum holds.

Why Does Operational Excellence Vital for Future Growth?

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 broaden financial investment in services, infrastructure, 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 financial investment and reform remain central to sustaining this trend. Policy measures targeted at bring in foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play a helpful function in 2026.

The World Bank, on the other hand, projects 3.2 percent development in 2025, speeding up 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, reflecting a shift towards more favorable general conditions.

The IMF's World Economic Outlook (October 2025) projects worldwide growth reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would place the region 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 local threat conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

How to Utilize Market Intelligence for 2026 Growth

Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to rise as governments expand financial 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 technology and AI-related facilities.

Public-sector investment and reform remain central to sustaining this pattern. Policy steps focused on drawing in foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play an encouraging function in 2026.