Advanced Planning for GCC Leadership

The sector also dealt with wider macro headwinds, consisting of a more mindful policy background in China and worldwide risk-off belief driven by geopolitical stress and greater energy costs. Thematic ETFs likewise struggled for the many part, especially those linked to carbon and high-growth technology, as appraisal pressures and global rate dynamics weighed on performance.

The petrochemical ETF considerably outperformed. Flows in Q1 2026 were modest and highly concentrated, showing selective allotment instead of broad market involvement. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with just a small number of products drawing in new capital. This indicates that investors were targeting specific exposures, while reducing or rotating out of others.

Trading activity remained steady, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have actually occurred in the secondary market, making it possible for investors to adjust positions without considerable primary productions or redemptions. While recent geopolitical events have led to more financial pressure on GCC nations, the area remains durable and well capitalized to deal with the scenario.

In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure focused on international high-end 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 expected to launch in April pending a last approval from ADX.

Q1 2026 showed some progress relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually affected belief and prices throughout the quarter, it has driven more volume and interest in regional properties.

How to Leverage Market Intelligence for 2026 Success

In spite of ongoing geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, maintaining favorable development momentum in the last few years. While conflicts in the larger area and worldwide financial uncertainty stay a structural restriction, GCC countries have actually so far restricted their impact on domestic economic performance through strong financial positions, policy connection, 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 projected to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) jobs international development alleviating to 3.1 percent in 2026, with innovative 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 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 fairly high-growth pocketprovided that local threat conditions remain contained and reform momentum holds.

Ensuring Operational Excellence in Regional Markets

Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to rise as governments broaden investment in services, infrastructure, and technology. 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, improving credit conditions, and increasing investment in technology and AI-related infrastructure.

Public-sector investment and reform remain main to sustaining this trend. Policy measures targeted at drawing in foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play a supportive role in 2026.

The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating 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 towards more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) jobs international development easing 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 contrast, a 4.44.5 percent GCC expansion would place 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 fairly high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Why Is Operational Excellence Crucial for Future Expansion?

Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to increase as governments broaden financial 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, improving credit conditions, and rising financial investment in innovation and AI-related infrastructure.

Public-sector investment and reform stay main to sustaining this trend. Policy measures aimed at drawing in foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are expected to play an encouraging function in 2026.