Navigating the Upcoming Regional Economic Landscape for Executives

The sector likewise faced more comprehensive macro headwinds, including a more mindful policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and higher energy rates. Thematic ETFs Struggled for the many part, especially those linked to carbon and high-growth technology, as valuation pressures and global rate characteristics weighed on efficiency.

The petrochemical ETF considerably outperformed. Flows in Q1 2026 were modest and extremely concentrated, showing selective allotment instead of broad market participation. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with just a small number of products attracting new capital. This shows that financiers were targeting particular direct exposures, while lowering or rotating out of others.

Trading activity stayed steady, 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 happened in the secondary market, enabling investors to adjust positions without significant main developments or redemptions. While recent geopolitical events have led to more financial pressure on GCC nations, the area remains resistant and well capitalized to deal with the situation.

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

Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted sentiment and rates throughout the quarter, it has actually driven more volume and interest in local properties.

Ways to Utilize GCC Research for 2026 Growth

Regardless of continuous geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, maintaining positive development momentum over the last few years. While disputes in the larger area and global economic uncertainty remain a structural constraint, GCC countries have actually up until now limited their effect on domestic financial performance through strong financial positions, policy continuity, and sustained investment.

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

The IMF's World Economic Outlook (October 2025) projects international growth relieving 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 place the region 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 local risk conditions stay included and reform momentum holds.

Ways to Leverage GCC Intelligence for Success

Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to rise as federal governments broaden investment in services, infrastructure, 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, improving credit conditions, and increasing investment in innovation and AI-related facilities.

Public-sector investment and reform remain main to sustaining this pattern. Policy steps targeted at bring in foreign direct investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the area's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play a helpful function in 2026.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to rise 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) tasks worldwide development easing 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 contrast, a 4.44.5 percent GCC growth would put the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that local risk conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Driving Operational Excellence in the GCC

Information 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 expand investment in services, infrastructure, 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, improving credit conditions, and rising financial investment in technology and AI-related facilities.

Public-sector financial investment and reform stay main to sustaining this pattern. Policy procedures targeted at bring in 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 area's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play a supportive role in 2026.