Strategic Strategy for Regional Leadership

The sector likewise faced wider macro headwinds, including a more careful policy background in China and global risk-off belief driven by geopolitical tensions and higher energy costs. Thematic ETFs likewise struggled for the many part, especially those connected to carbon and high-growth technology, as evaluation pressures and global rate characteristics weighed on efficiency.

The petrochemical ETF considerably outshined. Flows in Q1 2026 were modest and highly focused, showing selective allotment instead of broad market participation. Despite weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of items drawing in new capital. This suggests that financiers were targeting particular exposures, while minimizing 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. Many activity appears to have taken location in the secondary market, allowing investors to change positions without substantial main productions or redemptions.

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

Q1 2026 revealed some development relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected belief and costs during the quarter, it has actually driven more volume and interest in regional properties.

Why Does Business Excellence Vital for Future Expansion?

Regardless of ongoing geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, preserving favorable development momentum in current years. While conflicts in the wider area and global economic uncertainty stay a structural constraint, GCC countries have actually up until now limited their influence on domestic economic efficiency through strong financial positions, policy continuity, and continual 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 total conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide growth alleviating to 3.1 percent in 2026, with sophisticated 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 position 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 relatively high-growth pocketprovided that local threat conditions remain consisted of and reform momentum holds.

Why Does Operational Excellence Essential for Future Growth?

Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments expand financial investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity across the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising financial investment in technology and AI-related infrastructure.

Public-sector financial investment and reform remain central to sustaining this pattern. Policy measures focused on drawing in foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play a helpful role in 2026.

The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth projected to increase 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 worldwide growth relieving to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position the area 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 remain consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Advanced Strategy for Middle East Leadership

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 continued to rise as governments expand investment in services, infrastructure, 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 increasing investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform stay central to sustaining this pattern. Policy measures focused on bring in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play a helpful role in 2026.