Strategic Strategy for Regional Leadership

The sector also dealt with broader macro headwinds, including a more careful policy background in China and global risk-off sentiment driven by geopolitical stress and higher energy costs. Thematic ETFs Struggled for the a lot of part, particularly those linked to carbon and high-growth technology, as valuation pressures and worldwide rate characteristics weighed on performance.

The petrochemical ETF significantly surpassed. Circulations in Q1 2026 were modest and highly concentrated, showing selective allowance instead of broad market involvement. Regardless of weak performance, ETFs taped $27.1 million in net inflows, with only a small number of products drawing in new capital. This shows that investors were targeting particular exposures, while reducing or rotating out of others.

Trading activity remained stable, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have actually taken place in the secondary market, making it possible for financiers to change positions without considerable main productions or redemptions.

In January, Boreas launched its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure focused on worldwide high-end and consumer brand names. ETFs by the CMA for cross-listing on ADX.

Q1 2026 revealed some progress associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted sentiment and costs during the quarter, it has driven more volume and interest in regional properties.

Why Does Business Excellence Vital for Future Growth?

Regardless of ongoing geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, maintaining positive development momentum in recent years. While conflicts in the wider region and international financial unpredictability stay a structural restriction, GCC nations have so far restricted their effect on domestic economic performance through strong fiscal positions, policy continuity, and continual investment.

The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable general conditions.

The IMF's World Economic Outlook (October 2025) tasks worldwide growth alleviating 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 expansion would put the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that local risk conditions remain consisted of and reform momentum holds.

Emerging Shifts in the Future GCC Market

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

Public-sector investment and reform stay central to sustaining this trend. Policy procedures focused on bring in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement 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 profits are expected to play a helpful function in 2026.

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

The IMF's World Economic Outlook (October 2025) tasks global development easing 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 expansion would place the area 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 fairly high-growth pocketprovided that local risk conditions remain consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Ways to Leverage GCC Intelligence for Success

Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to increase as governments expand investment in services, infrastructure, 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, enhancing credit conditions, and rising financial investment in technology and AI-related infrastructure.

Public-sector financial investment and reform remain main to sustaining this pattern. Policy steps targeted at attracting foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play a helpful role in 2026.