Comparing Modern Models Versus Legacy Frameworks

The sector also faced more comprehensive macro headwinds, including a more careful policy backdrop in China and international risk-off belief driven by geopolitical tensions and higher energy prices. Thematic ETFs Had a hard time for the most part, particularly those connected to carbon and high-growth technology, as evaluation pressures and worldwide rate characteristics weighed on efficiency.

The petrochemical ETF considerably surpassed. Circulations in Q1 2026 were modest and extremely concentrated, showing selective allowance instead of broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with only a small number of items drawing in new capital. This indicates that investors were targeting particular exposures, while lowering or rotating out of others.

Trading activity remained constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have happened in the secondary market, making it possible for financiers to change positions without considerable primary creations or redemptions. While current geopolitical events have actually resulted in more monetary pressure on GCC nations, the area remains durable and well capitalized to deal with the situation.

In January, Boreas released its S&P Global High-end UCITS ETF, adding a niche thematic direct exposure focused on international 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 anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has affected sentiment and prices throughout the quarter, it has driven more volume and interest in regional assets.

Key Findings From Latest GCC Market Research Reports

Regardless of continuous geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, maintaining positive development momentum over the last few years. While disputes in the wider region and global economic uncertainty remain a structural constraint, GCC countries have up until now restricted their effect on domestic economic performance through strong fiscal positions, policy continuity, and sustained investment.

The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift toward more favorable general conditions.

The IMF's World Economic Outlook (October 2025) jobs global development easing 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 contrast, a 4.44.5 percent GCC growth would place the area 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 stay contained and reform momentum holds.

Strategic Strategy for Middle East Success

Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to increase as governments expand investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and increasing investment in technology and AI-related infrastructure.

Public-sector investment and reform remain central to sustaining this pattern. Policy steps aimed at drawing in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play an encouraging role in 2026.

3.2 percent growth in 2025, speeding up 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, reflecting a shift toward more positive total conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide development relieving 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 contrast, a 4.44.5 percent GCC growth would put the region 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 fairly high-growth pocketprovided that local threat conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Ways to Leverage Market Research for Growth

Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to rise as governments broaden financial investment in services, facilities, and technology. 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, improving credit conditions, and increasing financial investment in innovation and AI-related facilities.

Public-sector financial investment and reform remain main to sustaining this pattern. Policy measures targeted at drawing in foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are anticipated to play an encouraging role in 2026.