Corporate Strategy for GCC Excellence

The sector likewise dealt with broader macro headwinds, consisting of a more careful policy backdrop in China and global risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs also had a hard time for the most part, particularly those linked to carbon and high-growth innovation, as assessment pressures and international rate characteristics weighed on efficiency.

The petrochemical ETF substantially surpassed. Flows in Q1 2026 were modest and highly concentrated, showing selective allotment instead of broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with just a small number of items drawing in brand-new capital. This suggests that financiers were targeting particular exposures, while reducing or turning out of others.

Trading activity remained steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have taken place in the secondary market, enabling financiers to change positions without significant main creations or redemptions.

In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic exposure focused on worldwide luxury and consumer brand names. 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 launch in April pending a last approval from ADX.

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

How to Utilize GCC Intelligence for 2026 Growth

In spite of continuous geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, maintaining favorable development momentum in the last few years. While conflicts in the larger area and worldwide economic unpredictability remain a structural constraint, GCC countries have actually up until now restricted their effect on domestic financial efficiency through strong fiscal positions, policy continuity, and sustained investment.

The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating 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 toward more positive general conditions.

The IMF's World Economic Outlook (October 2025) tasks global development reducing 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 expansion 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 risk conditions remain included and reform momentum holds.

Strategic Strategy for Regional Excellence

Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to rise as governments broaden investment in services, facilities, and technology. 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, enhancing credit conditions, and increasing financial investment in technology and AI-related facilities.

Public-sector financial investment and reform remain central to sustaining this pattern. Policy measures focused on bring in foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil profits are expected to play a supportive function in 2026.

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 typically in 2025, reflecting a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) projects international 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 comparison, a 4.44.5 percent GCC growth would place the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that local threat conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Advanced Planning for Regional Success

Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden investment in services, facilities, and technology. 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 investment in technology and AI-related facilities.

Public-sector investment and reform remain central to sustaining this trend. Policy procedures targeted at attracting foreign direct investment, reducing foreign ownership guidelines, broadening 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 dominate the growth outlook, oil incomes are expected to play a helpful function in 2026.