Strategic Strategy for Regional Success

The sector likewise dealt with more comprehensive macro headwinds, consisting of a more careful policy backdrop in China and worldwide risk-off sentiment driven by geopolitical stress and greater energy prices. Thematic ETFs also struggled for the many part, especially those linked to carbon and high-growth innovation, as valuation pressures and global rate dynamics weighed on performance.

The petrochemical ETF considerably exceeded. Circulations in Q1 2026 were modest and highly focused, showing selective allowance instead of broad market involvement. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with only a little number of products drawing in new capital. This suggests that investors were targeting specific exposures, while minimizing or rotating out of others.

Trading activity stayed constant, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. The majority of activity appears to have taken place in the secondary market, enabling investors to adjust positions without substantial main developments or redemptions. While recent geopolitical events have actually led to more monetary pressure on GCC countries, the area remains resistant and well capitalized to handle the situation.

In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure concentrated on international luxury 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 introduce in April pending a final approval from ADX.

Q1 2026 revealed some development connecting to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually impacted belief and prices throughout the quarter, it has actually driven more volume and interest in local assets.

How to Utilize GCC Research for Growth

Regardless of ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, preserving positive growth momentum in the last few years. While disputes in the larger region and worldwide economic uncertainty stay a structural constraint, GCC nations have up until now limited their influence on domestic financial performance through strong fiscal positions, policy continuity, and sustained financial investment.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.

The IMF's World Economic Outlook (October 2025) tasks international growth easing 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 comparison, a 4.44.5 percent GCC growth would put the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that regional risk conditions stay consisted of and reform momentum holds.

Why Is Business Excellence Essential for Future Expansion?

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

Public-sector financial investment and reform stay central to sustaining this pattern. Policy procedures targeted at bring in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play a helpful 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 likewise sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift toward more positive overall conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide development easing 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 contrast, a 4.44.5 percent GCC growth would place the area 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 reasonably high-growth pocketprovided that local danger conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

How to Leverage GCC Intelligence for Growth

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 federal governments broaden investment in services, facilities, and innovation. 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 innovation and AI-related facilities.

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