Strategic Strategy for Regional Leadership

The sector also faced broader macro headwinds, consisting of a more careful policy background in China and global risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs Had a hard time for the most part, especially those linked to carbon and high-growth technology, as assessment pressures and global rate dynamics weighed on performance.

The petrochemical ETF considerably outshined. Flows in Q1 2026 were modest and highly concentrated, reflecting selective allocation rather than broad market participation. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a small number of items drawing in brand-new capital. This shows that financiers were targeting specific direct exposures, while reducing or rotating out of others.

Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually happened in the secondary market, allowing financiers to adjust positions without significant primary developments or redemptions. While recent geopolitical occasions have led to more financial pressure on GCC countries, the region stays durable and well capitalized to deal with the circumstance.

In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a niche thematic exposure concentrated on global high-end 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 anticipated to release in April pending a final approval from ADX.

Q1 2026 showed some development associating with ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted sentiment and costs throughout the quarter, it has actually driven more volume and interest in local assets.

How to Leverage Market Research for Growth

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 growth momentum in current years. While conflicts in the broader area and global financial uncertainty stay a structural restraint, GCC nations have so far restricted their influence on domestic economic performance through strong financial positions, policy continuity, and continual financial investment.

The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) jobs global development 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 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, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions remain consisted of and reform momentum holds.

How Does Business Excellence Vital for 2026 Expansion?

Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to increase as governments expand financial investment in services, facilities, and technology. 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 increasing investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform remain main to sustaining this pattern. Policy procedures focused on attracting foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play a helpful role in 2026.

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable 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 simply above 4 percent. On that contrast, 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, strengthening the GCC's status as a fairly high-growth pocketprovided that regional threat conditions remain contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Strategic Strategy for GCC Success

Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to rise as governments broaden financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across 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 facilities.

Public-sector investment and reform remain central to sustaining this pattern. Policy steps targeted at bring in foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play an encouraging function in 2026.