How Is Operational Excellence Crucial for 2026 Growth?

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

The petrochemical ETF considerably outperformed. Flows in Q1 2026 were modest and highly focused, showing selective allocation rather than broad market involvement. In spite of weak performance, ETFs taped $27.1 million in net inflows, with just a little number of items drawing in new capital. This indicates that investors were targeting particular direct exposures, while lowering or rotating out of others.

Trading activity stayed steady, 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, enabling financiers to change positions without substantial primary creations or redemptions.

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

Q1 2026 showed some development connecting to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted belief and costs during the quarter, it has actually driven more volume and interest in regional assets.

Ways to Leverage GCC Intelligence for Success

In spite of ongoing geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, keeping favorable development momentum over the last few years. While conflicts in the broader region and worldwide economic unpredictability stay a structural restraint, GCC countries have so far restricted their effect on domestic financial efficiency through strong financial positions, policy connection, and continual financial investment.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable total conditions.

The IMF's World Economic Outlook (October 2025) projects international 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 comparison, 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 fairly high-growth pocketprovided that local threat conditions stay included and reform momentum holds.

How Does Operational 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 actually continued to rise as governments broaden financial investment in services, infrastructure, 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 financial investment in technology and AI-related infrastructure.

Public-sector investment and reform remain main to sustaining this pattern. Policy procedures focused on bring in foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are anticipated to play a helpful role in 2026.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable overall conditions.

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

ANSR July GCC PRs 50DR+

Corporate Strategy for Middle East Leadership

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

Public-sector investment and reform stay central to sustaining this trend. Policy steps intended at attracting foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play an encouraging role in 2026.