Driving Industrial Operations Across Dubai and the GCC

The sector also faced wider macro headwinds, consisting of a more mindful policy background in China and global risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs Had a hard time for the most part, especially those linked to carbon and high-growth technology, as valuation pressures and global rate characteristics weighed on efficiency.

The petrochemical ETF considerably outperformed. Flows in Q1 2026 were modest and highly concentrated, reflecting selective allocation instead of broad market participation. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with only a small number of items drawing in brand-new capital. This suggests that financiers were targeting particular direct exposures, while lowering or turning out of others.

Trading activity remained stable, 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 actually happened in the secondary market, making it possible for investors to change positions without significant primary developments or redemptions. While recent geopolitical occasions have led to more monetary pressure on GCC countries, the region remains durable and well capitalized to handle the situation.

In January, Boreas introduced its S&P Global Luxury 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 international and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted sentiment and rates throughout the quarter, it has driven more volume and interest in local assets.

Essential Findings Within Latest GCC Market Analysis Reports

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 show resilience, preserving favorable development momentum in recent years. While disputes in the wider region and worldwide financial unpredictability remain a structural restraint, GCC countries have so far restricted their influence on domestic economic performance through strong fiscal positions, policy continuity, and continual investment.

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

The IMF's World Economic Outlook (October 2025) tasks international growth reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would position 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 relatively high-growth pocketprovided that local threat conditions remain contained and reform momentum holds.

Strategic Planning for GCC Leadership

Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments broaden financial investment in services, infrastructure, 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, improving credit conditions, and increasing investment in technology and AI-related facilities.

Public-sector financial investment and reform remain main to sustaining this trend. Policy procedures focused on bring in foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play an encouraging role in 2026.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive overall conditions.

The IMF's World Economic Outlook (October 2025) jobs international growth alleviating to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, 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, strengthening the GCC's status as a fairly high-growth pocketprovided that regional danger conditions remain consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

How Does Operational Excellence Essential for Future Growth?

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

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