Ensuring Operational Excellence in the GCC

The sector also dealt with broader macro headwinds, consisting of a more mindful policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and greater energy prices. Thematic ETFs Struggled for the a lot of part, especially those connected to carbon and high-growth technology, as assessment pressures and international rate dynamics weighed on efficiency.

The petrochemical ETF considerably outperformed. Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allowance rather than broad market participation. Regardless of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a small number of products bring in new capital. This indicates that financiers were targeting specific exposures, while decreasing or turning out of others.

Trading activity remained stable, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have actually happened in the secondary market, making it possible for investors to adjust positions without substantial primary developments or redemptions. While recent geopolitical events have resulted in more financial pressure on GCC countries, the region remains resilient and well capitalized to handle the situation.

In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure focused on global high-end 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 launch in April pending a last approval from ADX.

Q1 2026 revealed some development associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has affected belief and costs during the quarter, it has actually driven more volume and interest in regional assets.

Why Is Business Excellence Vital for Future Expansion?

Despite continuous geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, preserving positive growth momentum in current years. While disputes in the wider area and worldwide economic uncertainty stay a structural constraint, GCC countries have up until now restricted their effect on domestic financial performance through strong fiscal positions, policy continuity, and continual financial investment.

The World Bank, on the other hand, jobs 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF 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 total conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide growth alleviating to 3.1 percent in 2026, with sophisticated 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 region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a relatively high-growth pocketprovided that local threat conditions remain included and reform momentum holds.

Why Does Business Excellence Crucial for Future Growth?

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 federal governments expand 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, enhancing credit conditions, and increasing financial investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform stay main to sustaining this pattern. Policy steps targeted at drawing in foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play a supportive role in 2026.

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, showing a shift toward more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide development reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing 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 slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that regional risk conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

Corporate Planning for Middle East Success

Data from the GCC Statistical Center reveal 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 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 rising financial investment in technology and AI-related facilities.

Public-sector investment and reform stay central to sustaining this pattern. Policy steps focused on drawing in foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play an encouraging function in 2026.