Why Is Operational Excellence Crucial for Future Expansion?

The sector also faced wider macro headwinds, including a more cautious policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and higher energy costs. Thematic ETFs also struggled for the most part, particularly those linked to carbon and high-growth technology, as assessment pressures and worldwide rate dynamics weighed on performance.

The petrochemical ETF significantly outperformed. Flows in Q1 2026 were modest and extremely focused, reflecting selective allotment instead of broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with only a small number of products bring in brand-new capital. This suggests that financiers were targeting specific exposures, while decreasing or turning out of others.

Trading activity stayed constant, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have actually occurred in the secondary market, enabling financiers to change positions without substantial primary productions or redemptions. While recent geopolitical occasions have resulted in more financial pressure on GCC nations, the area remains resilient and well capitalized to handle the scenario.

In January, Boreas launched its S&P Global High-end UCITS ETF, adding a specific niche thematic direct exposure concentrated on global luxury and consumer brand names. 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 release in April pending a last approval from ADX.

Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate 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 driven more volume and interest in regional assets.

Corporate Planning for Middle East Leadership

Regardless of continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, maintaining favorable growth momentum in current years. While conflicts in the larger area and worldwide financial uncertainty remain a structural restriction, GCC countries have so far restricted their effect on domestic economic efficiency through strong financial positions, policy continuity, and continual financial investment.

3.2 percent development 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, reflecting a shift toward more positive general conditions.

The IMF's World Economic Outlook (October 2025) projects global development alleviating to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, 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, enhancing the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions stay consisted of and reform momentum holds.

How to Leverage Market Intelligence for Growth

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 rise as 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, enhancing credit conditions, and increasing investment in technology and AI-related infrastructure.

Public-sector investment and reform remain central to sustaining this trend. Policy procedures targeted at attracting foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play a helpful 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 increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive overall conditions.

The IMF's World Economic Outlook (October 2025) projects worldwide development reducing to 3.1 percent in 2026, with sophisticated 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 put 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 reasonably high-growth pocketprovided that local threat conditions remain consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Corporate Planning for Regional Excellence

Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall 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 projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising financial investment in technology and AI-related facilities.

Public-sector financial investment and reform remain central to sustaining this pattern. Policy steps aimed at drawing in foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are anticipated to play an encouraging role in 2026.