Strategic Strategy for Regional Leadership

The sector also dealt with wider macro headwinds, including a more mindful policy backdrop in China and worldwide risk-off belief driven by geopolitical tensions and greater energy costs. Thematic ETFs Struggled for the most part, particularly those linked to carbon and high-growth innovation, as assessment pressures and international rate dynamics weighed on performance.

The petrochemical ETF significantly surpassed. Circulations in Q1 2026 were modest and extremely concentrated, showing selective allotment instead of broad market involvement. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with only a small number of items bring in brand-new capital. This shows that financiers were targeting particular direct exposures, while decreasing or rotating out of others.

Trading activity stayed stable, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have taken place in the secondary market, allowing financiers to change positions without considerable primary creations or redemptions. While recent geopolitical occasions have resulted in more monetary pressure on GCC nations, the region stays resistant and well capitalized to deal with the situation.

In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a niche thematic direct exposure focused on international luxury and customer brands. ETFs by the CMA for cross-listing on ADX.

Q1 2026 revealed some progress relating 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 prices throughout the quarter, it has actually driven more volume and interest in regional assets.

Implementing Regional Business Frameworks for Scalable Operations

Despite continuous geopolitical stress and security risks across 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 broader region and worldwide economic unpredictability remain a structural restriction, GCC nations have up until now limited their impact on domestic economic performance through strong financial positions, policy connection, and continual 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 growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive total conditions.

The IMF's World Economic Outlook (October 2025) jobs international development relieving to 3.1 percent in 2026, with advanced 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, reinforcing the GCC's status as a relatively high-growth pocketprovided that regional risk conditions remain contained and reform momentum holds.

Strategic Planning for GCC Success

Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to increase as federal governments expand 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, improving credit conditions, and increasing investment in innovation and AI-related infrastructure.

Public-sector investment and reform stay main to sustaining this pattern. Policy steps aimed at bring in foreign direct financial investment, easing foreign ownership guidelines, expanding 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 control the growth outlook, oil revenues are expected to play a supportive function in 2026.

The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF 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 towards more positive general conditions.

The IMF's World Economic Outlook (October 2025) tasks worldwide growth reducing to 3.1 percent in 2026, with sophisticated 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 area 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 fairly high-growth pocketprovided that local risk conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Why Does Business Excellence Essential for Future Expansion?

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 broaden 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 investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform remain main to sustaining this pattern. Policy procedures targeted at drawing in foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected to play a supportive role in 2026.