Strategic Planning for Middle East Leadership

The sector also dealt with more comprehensive macro headwinds, including a more cautious policy background in China and global risk-off sentiment driven by geopolitical tensions and higher energy rates. Thematic ETFs Struggled for the most part, especially those linked to carbon and high-growth technology, as evaluation pressures and global rate dynamics weighed on efficiency.

The petrochemical ETF substantially surpassed. Flows in Q1 2026 were modest and highly focused, reflecting selective allotment instead of broad market involvement. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a little number of items drawing in brand-new capital. This suggests that financiers were targeting particular exposures, while decreasing or rotating out of others.

Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have taken place in the secondary market, allowing financiers to adjust positions without considerable primary productions or redemptions. While recent geopolitical occasions have resulted in more monetary pressure on GCC nations, the region remains durable and well capitalized to handle the scenario.

In January, Boreas launched its S&P Global Luxury UCITS ETF, including a niche thematic exposure concentrated on international 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 anticipated to launch in April pending a last approval from ADX.

Q1 2026 revealed some progress associating with ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has affected belief and prices throughout the quarter, it has driven more volume and interest in local properties.

Corporate Planning for GCC Leadership

Regardless of ongoing geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, maintaining positive development momentum in the last few years. While disputes in the broader region and global economic uncertainty stay a structural restriction, GCC nations have actually so far limited their effect on domestic economic performance through strong fiscal positions, policy continuity, and sustained financial investment.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to increase 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) jobs international growth 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 comparison, a 4.44.5 percent GCC expansion would put 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 risk conditions stay included and reform momentum holds.

Why Does Operational Excellence Vital for Future Growth?

Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to rise as federal governments broaden investment in services, infrastructure, 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 rising investment in innovation and AI-related facilities.

Public-sector investment and reform stay main to sustaining this pattern. Policy steps focused on attracting foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play an encouraging function in 2026.

The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift towards more favorable total conditions.

The IMF's World Economic Outlook (October 2025) tasks global growth alleviating to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would place the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that local threat conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Achieving Operational Excellence in the GCC

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 actually continued to rise as governments expand investment in services, facilities, and technology. 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 financial investment in innovation and AI-related facilities.

Public-sector financial investment and reform stay central to sustaining this pattern. Policy procedures targeted at bring in foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play an encouraging role in 2026.