Advanced Strategy for Regional Leadership

The sector likewise faced more comprehensive macro headwinds, consisting of a more careful policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and greater energy prices. Thematic ETFs also had a hard time for the most part, especially those linked to carbon and high-growth technology, as valuation pressures and worldwide rate dynamics weighed on performance.

The petrochemical ETF considerably outshined. Circulations in Q1 2026 were modest and highly focused, reflecting selective allocation rather than broad market participation. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a small number of products bring in brand-new capital. This shows that investors were targeting specific direct exposures, while reducing or turning out of others.

Trading activity remained consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have actually taken place in the secondary market, making it possible for financiers to change positions without considerable main developments or redemptions.

In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a niche thematic exposure concentrated 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 anticipated to launch in April pending a final approval from ADX.

Q1 2026 showed some development relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually affected belief and rates during the quarter, it has actually driven more volume and interest in local properties.

How to Leverage GCC Intelligence for Growth

Despite continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, keeping favorable development momentum in the last few years. While disputes in the larger region and international economic uncertainty stay a structural restriction, GCC countries have actually so far restricted their influence on domestic economic efficiency through strong financial positions, policy connection, and continual financial investment.

The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive overall 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 just above 4 percent. On that comparison, a 4.44.5 percent GCC growth would put 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 stay consisted of and reform momentum holds.

How to Utilize GCC Intelligence for 2026 Growth

Data 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 increase 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 stay main to sustaining this trend. Policy procedures intended at drawing in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play an encouraging role in 2026.

The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift toward more positive overall conditions.

The IMF's World Economic Outlook (October 2025) projects global growth reducing 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 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 reasonably high-growth pocketprovided that local risk conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

How Does Business Excellence Essential for 2026 Growth?

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

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