Advanced Strategy for Regional Success

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

The petrochemical ETF considerably exceeded. Flows in Q1 2026 were modest and highly focused, reflecting selective allocation instead of broad market involvement. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items bring in brand-new capital. This indicates that investors were targeting particular direct exposures, while reducing or turning out of others.

Trading activity stayed consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have occurred in the secondary market, making it possible for investors to change positions without considerable primary creations or redemptions. While current geopolitical events have actually resulted in more monetary pressure on GCC countries, the area stays resilient and well capitalized to handle the situation.

In January, Boreas released its S&P Global Luxury UCITS ETF, adding a niche thematic direct exposure focused on international luxury and consumer brands. ETFs by the CMA for cross-listing on ADX.

Q1 2026 showed some progress connecting to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the conflict has impacted sentiment and rates during the quarter, it has driven more volume and interest in regional possessions.

Implementing GCC Corporate Frameworks for Scalable Operations

Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, preserving favorable growth momentum recently. While conflicts in the wider region and global financial unpredictability remain a structural constraint, GCC countries have actually up until now limited their impact on domestic economic efficiency through strong financial positions, policy connection, and continual investment.

3.2 percent development in 2025, speeding up 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 positive general conditions.

The IMF's World Economic Outlook (October 2025) projects worldwide development alleviating to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position 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 reasonably high-growth pocketprovided that local danger conditions stay included and reform momentum holds.

Strategic Strategy for Regional Leadership

Information 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 governments expand investment in services, facilities, and innovation. 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, improving credit conditions, and increasing financial investment in innovation and AI-related infrastructure.

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

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. 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 toward more favorable general conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide development relieving to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would place the area 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 consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

How Does Operational Excellence Essential for 2026 Expansion?

Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments expand financial investment in services, infrastructure, 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, improving credit conditions, and increasing financial investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform remain main to sustaining this trend. Policy measures aimed at drawing in foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play a supportive function in 2026.