Strategic Strategy for Middle East Excellence

The sector likewise dealt with wider macro headwinds, consisting of a more cautious policy backdrop in China and worldwide risk-off belief driven by geopolitical tensions and greater energy rates. Thematic ETFs likewise had a hard time for the most part, especially those linked to carbon and high-growth technology, as evaluation pressures and international rate characteristics weighed on efficiency.

The petrochemical ETF significantly outperformed. Circulations in Q1 2026 were modest and extremely concentrated, showing selective allotment rather than broad market involvement. Regardless of weak performance, ETFs taped $27.1 million in net inflows, with only a small number of items attracting new capital. This indicates that financiers were targeting particular direct exposures, while minimizing or rotating out of others.

Trading activity remained constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have actually taken location in the secondary market, allowing financiers to adjust positions without significant main developments or redemptions. While recent geopolitical events have resulted in more financial pressure on GCC nations, the region remains resilient and well capitalized to deal with the scenario.

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

Q1 2026 showed some development relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected sentiment and prices during the quarter, it has driven more volume and interest in local possessions.

Key Findings From Latest GCC Market Analysis Reports

Regardless of continuous geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, preserving favorable growth momentum in the last few years. While conflicts in the larger region and international economic unpredictability stay a structural restriction, GCC countries have up until now limited their influence on domestic financial performance through strong financial positions, policy continuity, and sustained investment.

3.2 percent growth 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 general conditions.

The IMF's World Economic Outlook (October 2025) jobs global growth alleviating to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC growth 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 reasonably high-growth pocketprovided that local risk conditions stay contained and reform momentum holds.

Why Does Operational Excellence Crucial for 2026 Expansion?

Information 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 increase as federal governments expand financial investment in services, infrastructure, and technology. 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 investment in innovation and AI-related facilities.

Public-sector financial investment and reform remain main to sustaining this trend. Policy procedures focused on attracting foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are expected to play a supportive role 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 similarly sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift towards more favorable general conditions.

The IMF's World Economic Outlook (October 2025) projects global growth relieving 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 growth would position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that regional threat conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

Why Does Operational Excellence Vital for 2026 Growth?

Information 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 increase as governments expand investment in services, infrastructure, and technology. 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 investment in technology and AI-related facilities.

Public-sector financial investment and reform stay central to sustaining this trend. Policy measures targeted at drawing in foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a supportive role in 2026.