Achieving Operational Excellence in the GCC

The sector also dealt with broader macro headwinds, including a more mindful policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and greater energy costs. Thematic ETFs also had a hard time for the many part, particularly those connected to carbon and high-growth technology, as valuation pressures and worldwide rate characteristics weighed on performance.

The petrochemical ETF significantly outshined. Flows in Q1 2026 were modest and extremely concentrated, showing selective allocation instead of broad market involvement. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items attracting new capital. This shows that investors were targeting specific exposures, while reducing or turning out of others.

Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have actually taken location in the secondary market, making it possible for financiers to adjust positions without significant primary creations or redemptions.

In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure focused on international luxury and customer 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 expected to release in April pending a final approval from ADX.

Q1 2026 revealed some development connecting to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and prices during the quarter, it has actually driven more volume and interest in regional possessions.

Strategic Strategy for GCC Success

Regardless of continuous geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, preserving positive development momentum in the last few years. While conflicts in the broader region and worldwide economic unpredictability remain a structural restraint, GCC nations have actually so far restricted their effect on domestic economic performance through strong financial positions, policy continuity, and sustained investment.

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

The IMF's World Economic Outlook (October 2025) projects international 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 comparison, a 4.44.5 percent GCC growth would place the region 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 regional risk conditions stay consisted of and reform momentum holds.

How to Leverage GCC Intelligence for Success

Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to rise as governments broaden financial investment in services, facilities, and innovation. 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 infrastructure.

Public-sector investment and reform stay main to sustaining this pattern. Policy measures targeted at drawing in foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play a helpful role in 2026.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) jobs global growth alleviating 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 put the area 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 risk conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

How Does Business Excellence Essential for Future Growth?

Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden financial investment in services, infrastructure, 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, enhancing credit conditions, and rising financial investment in innovation and AI-related facilities.

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