Advanced Planning for GCC Leadership

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

The petrochemical ETF significantly surpassed. Flows in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market participation. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of items attracting new capital. This suggests that financiers were targeting particular exposures, while reducing or turning out of others.

Trading activity remained steady, with typical 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, allowing financiers to change positions without considerable primary developments or redemptions.

In January, Boreas launched its S&P Global High-end UCITS ETF, including a specific niche thematic exposure concentrated on worldwide high-end 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 expected to introduce in April pending a final approval from ADX.

Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has affected belief and prices during the quarter, it has actually driven more volume and interest in local possessions.

Strategic Strategy for Middle East Leadership

In spite of continuous geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, maintaining favorable development momentum in current years. While disputes in the broader area and international economic uncertainty stay a structural constraint, GCC countries have up until now limited their impact on domestic economic performance through strong financial positions, policy continuity, and sustained investment.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. 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 total conditions.

The IMF's World Economic Outlook (October 2025) tasks international development reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, 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 relatively high-growth pocketprovided that local threat conditions remain included and reform momentum holds.

How Is Business Excellence Essential for Future Growth?

Information from the GCC Statistical Center show 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, improving credit conditions, and increasing investment in innovation and AI-related facilities.

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

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) jobs global growth reducing 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 a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a relatively high-growth pocketprovided that regional risk conditions remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

Why Is Operational Excellence Vital for Future 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 continued to rise 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, enhancing credit conditions, and increasing financial investment in technology and AI-related facilities.

Public-sector financial investment and reform remain main to sustaining this pattern. Policy measures targeted at bring in foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are expected to play a helpful function in 2026.