Advanced Planning for Regional Excellence

The sector also faced more comprehensive macro headwinds, including a more cautious policy background in China and worldwide risk-off sentiment driven by geopolitical stress and greater energy prices. Thematic ETFs also struggled for the many part, especially those connected to carbon and high-growth technology, as assessment pressures and global rate characteristics weighed on performance.

The petrochemical ETF substantially surpassed. Flows in Q1 2026 were modest and highly concentrated, showing selective allotment rather than broad market participation. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with just a small number of products attracting brand-new capital. This suggests that investors were targeting particular direct exposures, while decreasing or rotating out of others.

Trading activity stayed stable, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have happened in the secondary market, allowing financiers to adjust positions without significant main productions or redemptions. While recent geopolitical occasions have led to more financial pressure on GCC nations, the area remains durable and well capitalized to deal with the situation.

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

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

Why Is Business Excellence Essential for Future Growth?

Despite continuous geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, keeping favorable growth momentum over the last few years. While disputes in the broader region and worldwide economic unpredictability stay a structural constraint, GCC nations have up until now restricted their effect on domestic economic efficiency through strong financial positions, policy connection, and sustained investment.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide development alleviating 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 expansion would position 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 relatively high-growth pocketprovided that regional threat conditions stay included and reform momentum holds.

Advanced Strategy for Regional Success

Data 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 governments broaden 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 increasing investment in technology and AI-related infrastructure.

Public-sector investment and reform stay central to sustaining this pattern. Policy measures focused on drawing in foreign direct investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play an encouraging function in 2026.

The World Bank, on the other hand, projects 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 typically in 2025, reflecting a shift toward more positive total conditions.

The IMF's World Economic Outlook (October 2025) projects worldwide development alleviating 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 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 reasonably high-growth pocketprovided that regional danger conditions remain consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Corporate Strategy for GCC Leadership

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

Public-sector financial investment and reform stay central to sustaining this pattern. Policy measures targeted at bring in foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play a helpful function in 2026.