Driving Operational Excellence in Regional Markets

The sector also dealt with more comprehensive macro headwinds, including a more cautious policy backdrop in China and global risk-off belief driven by geopolitical tensions and higher energy costs. Thematic ETFs Struggled for the many part, particularly those connected to carbon and high-growth innovation, as valuation pressures and worldwide rate dynamics weighed on efficiency.

The petrochemical ETF considerably exceeded. Circulations in Q1 2026 were modest and extremely focused, showing selective allowance rather than broad market involvement. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with just a little number of products drawing in new capital. This shows that investors were targeting particular exposures, while lowering or rotating out of others.

Trading activity stayed constant, with average 30-day volumes around 33,000 shares, concentrated 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 investors to adjust positions without significant main developments or redemptions.

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

Q1 2026 showed some development relating to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has affected sentiment and rates during the quarter, it has driven more volume and interest in regional assets.

Strategic Strategy for GCC Excellence

Regardless of continuous geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, keeping positive growth momentum in current years. While conflicts in the larger region and international financial uncertainty remain a structural restraint, GCC nations have actually so far restricted their influence on domestic economic performance through strong financial positions, policy continuity, and continual financial investment.

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

The IMF's World Economic Outlook (October 2025) tasks worldwide growth easing to 3.1 percent in 2026, with sophisticated 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 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 reasonably high-growth pocketprovided that regional risk conditions remain consisted of and reform momentum holds.

How Is Operational Excellence Vital for 2026 Growth?

Data 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 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, enhancing credit conditions, and increasing investment in innovation and AI-related facilities.

Public-sector financial investment and reform stay central to sustaining this pattern. Policy procedures intended at attracting foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a helpful function in 2026.

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 development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive total conditions.

The IMF's World Economic Outlook (October 2025) projects worldwide growth easing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would position the region materially ahead of the world average and a little 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 stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

Essential Data Within Latest GCC Market Research Reports

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

Public-sector investment and reform stay central to sustaining this trend. Policy measures focused on drawing in foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a helpful function in 2026.