Comparing Innovative Strategies Against Legacy Business

The sector also faced broader macro headwinds, consisting of a more cautious policy background in China and international risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs also struggled for the a lot of part, especially those linked to carbon and high-growth technology, as assessment pressures and international rate dynamics weighed on efficiency.

The petrochemical ETF substantially surpassed. Circulations in Q1 2026 were modest and extremely focused, showing selective allocation instead of broad market participation. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with just a small number of products bring in new capital. This shows that financiers were targeting particular exposures, while reducing or rotating out of others.

Trading activity remained steady, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have taken place in the secondary market, enabling investors to change positions without substantial main creations or redemptions.

In January, Boreas released its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure focused on worldwide high-end and consumer brands. ETFs by the CMA for cross-listing on ADX.

Q1 2026 showed some development connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the dispute has impacted sentiment and rates throughout the quarter, it has actually driven more volume and interest in local properties.

How to Utilize Market Intelligence for 2026 Growth

Regardless of ongoing geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, keeping favorable development momentum in current years. While conflicts in the larger region and worldwide financial uncertainty remain a structural constraint, GCC nations have actually up until now restricted their impact on domestic economic efficiency through strong financial positions, policy connection, and continual financial investment.

The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) tasks global development alleviating to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would place the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that local threat conditions stay contained and reform momentum holds.

How Is Operational Excellence Vital for 2026 Growth?

Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to increase as governments broaden financial investment in services, infrastructure, 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 facilities.

Public-sector investment and reform stay central to sustaining this pattern. Policy steps intended at drawing in foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play an encouraging function in 2026.

The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide growth easing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would place the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions remain contained 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 continued to rise as governments expand investment in services, infrastructure, 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 increasing investment in innovation and AI-related facilities.

Public-sector financial investment and reform remain central to sustaining this trend. Policy procedures targeted at attracting 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 region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play an encouraging role in 2026.