Advanced Strategy for Middle East Leadership

The sector also dealt with more comprehensive macro headwinds, including a more cautious policy backdrop in China and international risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs Struggled for the most part, particularly those connected to carbon and high-growth innovation, as evaluation pressures and worldwide rate characteristics weighed on performance.

The petrochemical ETF significantly outshined. Flows in Q1 2026 were modest and highly focused, showing selective allotment instead of broad market participation. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of items drawing in new capital. This indicates that investors were targeting specific exposures, while decreasing or turning out of others.

Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Many activity appears to have taken location in the secondary market, allowing investors to change positions without significant main productions or redemptions. While current geopolitical occasions have actually led to more financial pressure on GCC nations, the region stays resilient and well capitalized to deal with the circumstance.

In January, Boreas released its S&P Global High-end UCITS ETF, including a specific niche thematic exposure focused on global 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 launch in April pending a final approval from ADX.

Q1 2026 revealed some progress associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has impacted sentiment and prices throughout the quarter, it has actually driven more volume and interest in regional possessions.

Strategic Strategy for GCC Excellence

In spite of continuous geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, keeping favorable development momentum over the last few years. While disputes in the broader area and international economic unpredictability remain a structural restraint, GCC nations have actually up until now limited their effect on domestic economic efficiency through strong fiscal positions, policy continuity, and sustained investment.

3.2 percent growth in 2025, accelerating 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, showing a shift toward more positive total conditions.

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

How to Utilize Market Research for 2026 Success

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

Public-sector investment and reform stay central to sustaining this pattern. Policy measures aimed at attracting foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the area's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play an encouraging role in 2026.

The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF 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 positive general conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide growth 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 position the area 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 danger conditions remain consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Why Is Operational Excellence Essential for 2026 Growth?

Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments expand investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is projected 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 financial investment and reform remain main to sustaining this trend. Policy steps focused on bring in foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play an encouraging function in 2026.