Achieving Operational Excellence in the GCC

The sector likewise faced wider macro headwinds, including a more mindful policy backdrop in China and worldwide risk-off belief driven by geopolitical tensions and higher energy prices. Thematic ETFs also had a hard time for the many part, especially those connected to carbon and high-growth technology, as assessment pressures and worldwide rate characteristics weighed on efficiency.

The petrochemical ETF substantially outperformed. Circulations in Q1 2026 were modest and extremely focused, showing selective allocation instead of broad market involvement. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a little number of items drawing in new capital. This suggests that investors were targeting particular exposures, while decreasing or turning out of others.

Trading activity stayed steady, with average 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 location in the secondary market, making it possible for investors to change positions without substantial primary creations or redemptions.

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

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

Strategic Strategy for Regional Excellence

Regardless of continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, maintaining favorable development momentum in recent years. While disputes in the broader region and global financial unpredictability stay a structural restriction, GCC countries have so far limited their effect on domestic financial performance through strong fiscal positions, policy connection, and sustained investment.

The World Bank, on the other hand, projects 3.2 percent growth 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 usually in 2025, reflecting a shift toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) jobs global development alleviating to 3.1 percent in 2026, with advanced 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 put 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 stay contained and reform momentum holds.

Advanced Planning for Regional Success

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

Public-sector investment and reform remain central to sustaining this trend. Policy procedures focused on drawing in foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play a helpful function in 2026.

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

The IMF's World Economic Outlook (October 2025) tasks global growth easing 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 position 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 relatively high-growth pocketprovided that local threat conditions remain contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Ways to Leverage Market Research for Success

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

Public-sector investment and reform stay central to sustaining this trend. Policy steps focused on drawing in foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play a supportive role in 2026.