Corporate Strategy for Regional Success

The sector likewise dealt with more comprehensive macro headwinds, consisting of a more mindful policy background in China and international risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs also struggled for the most part, especially those connected to carbon and high-growth technology, as appraisal pressures and worldwide rate characteristics weighed on performance.

Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allotment rather than broad market involvement. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a small number of products drawing in new capital.

Trading activity remained stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Most activity appears to have taken place in the secondary market, enabling investors to adjust positions without considerable primary developments or redemptions.

In January, Boreas launched its S&P Global High-end UCITS ETF, adding a niche thematic exposure focused on worldwide luxury and consumer 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 anticipated to launch in April pending a last approval from ADX.

Q1 2026 showed some development connecting to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and rates during the quarter, it has driven more volume and interest in regional properties.

How Does Operational Excellence Vital for Future Growth?

In spite of ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, maintaining favorable growth momentum in the last few years. While conflicts in the broader area and international economic unpredictability remain a structural restraint, GCC countries have actually so far restricted their effect on domestic financial performance through strong fiscal positions, policy connection, and continual financial investment.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development 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 advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would put the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that local danger conditions remain contained and reform momentum holds.

Advanced Planning for Regional Leadership

Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to increase as governments expand 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, enhancing credit conditions, and increasing investment in technology and AI-related facilities.

Public-sector investment and reform remain central to sustaining this trend. Policy steps aimed at bring in foreign direct investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play a helpful role in 2026.

The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable general conditions.

The IMF's World Economic Outlook (October 2025) jobs international growth reducing 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 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+

Comparing Modern Models Versus Legacy Frameworks

Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to rise as governments broaden investment in services, facilities, 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 remain main to sustaining this pattern. Policy procedures aimed at bring in foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play a helpful function in 2026.