Strategic Strategy for Regional Success

The sector likewise faced more comprehensive macro headwinds, including a more careful policy background in China and international risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs likewise struggled for the most part, particularly those connected to carbon and high-growth technology, as valuation pressures and worldwide rate dynamics weighed on performance.

The petrochemical ETF considerably outperformed. Flows in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market participation. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a small number of items drawing in brand-new capital. This shows that investors were targeting particular direct exposures, while lowering or turning 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. The majority of activity appears to have taken location in the secondary market, making it possible for investors to change positions without substantial main productions or redemptions.

In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a specific niche thematic exposure concentrated on global luxury 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 expected to introduce in April pending a final approval from ADX.

Q1 2026 showed some progress connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted belief and costs during the quarter, it has driven more volume and interest in local assets.

Why Does Operational Excellence Crucial for 2026 Growth?

Regardless of ongoing geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, preserving favorable growth momentum in the last few years. While conflicts in the larger area and global financial uncertainty stay a structural restriction, GCC countries have up until now restricted their effect on domestic economic performance through strong financial positions, policy connection, and continual investment.

3.2 percent growth in 2025, accelerating 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 towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) tasks global development reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing 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 danger conditions remain contained and reform momentum holds.

Advanced Strategy for GCC Success

Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to increase as governments broaden financial 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 increasing financial investment in innovation and AI-related infrastructure.

Public-sector investment and reform stay main to sustaining this pattern. Policy steps targeted at attracting foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play an encouraging role in 2026.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive general conditions.

The IMF's World Economic Outlook (October 2025) tasks global development alleviating 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 place the area 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 relatively high-growth pocketprovided that regional danger conditions remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

Advanced Strategy for GCC Excellence

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

Public-sector investment and reform stay main to sustaining this trend. Policy procedures targeted at drawing in foreign direct financial investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play an encouraging role in 2026.