Strategic Strategy for Regional Excellence

The sector likewise 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 higher energy costs. Thematic ETFs Had a hard time for the most part, especially those linked to carbon and high-growth technology, as appraisal pressures and global rate characteristics weighed on performance.

The petrochemical ETF significantly exceeded. Circulations in Q1 2026 were modest and extremely focused, showing selective allowance rather than broad market involvement. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with only a small number of products attracting new capital. This indicates that investors were targeting specific exposures, while lowering or turning out of others.

Trading activity remained steady, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have actually taken location in the secondary market, making it possible for financiers to change positions without substantial primary creations or redemptions.

In January, Boreas released its S&P Global Luxury UCITS ETF, adding a specific niche thematic exposure concentrated on global luxury and customer 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 anticipated to introduce in April pending a last approval from ADX.

Q1 2026 revealed some development associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has affected sentiment and rates throughout the quarter, it has driven more volume and interest in local assets.

Advanced Strategy for Regional Excellence

Despite continuous geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, preserving favorable growth momentum over the last few years. While disputes in the larger area and worldwide economic unpredictability remain a structural restriction, GCC countries have actually up until now restricted their effect on domestic financial efficiency through strong fiscal positions, policy connection, and continual investment.

The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) projects worldwide growth relieving 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 comparison, a 4.44.5 percent GCC expansion would put 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 fairly high-growth pocketprovided that local danger conditions stay consisted of and reform momentum holds.

Why Does Business Excellence Vital for 2026 Expansion?

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 rise as governments broaden financial investment in services, facilities, and technology. 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 financial investment in technology and AI-related infrastructure.

Public-sector investment and reform stay main to sustaining this trend. Policy procedures intended at drawing in foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a helpful role in 2026.

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

The IMF's World Economic Outlook (October 2025) tasks worldwide growth 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 put 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 relatively high-growth pocketprovided that local danger conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Navigating GCC Business Strategies for Sustainable Operations

Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to rise as governments broaden investment in services, facilities, 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 increasing financial investment in technology and AI-related infrastructure.

Public-sector financial investment and reform remain main to sustaining this trend. Policy steps targeted at bring in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the region's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play a supportive role in 2026.