Corporate Strategy for Regional Leadership

The sector likewise dealt with broader macro headwinds, consisting of a more mindful policy backdrop in China and global risk-off belief driven by geopolitical tensions and higher energy prices. Thematic ETFs Struggled for the a lot of part, particularly those connected to carbon and high-growth technology, as valuation pressures and global rate dynamics weighed on performance.

The petrochemical ETF considerably outshined. Circulations in Q1 2026 were modest and extremely concentrated, showing selective allowance instead of broad market participation. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of items attracting new capital. This indicates that financiers were targeting specific direct exposures, while reducing or turning out of others.

Trading activity remained stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. A lot of activity appears to have actually taken location in the secondary market, allowing investors to adjust positions without substantial primary developments or redemptions.

In January, Boreas released its S&P Global High-end UCITS ETF, including a niche thematic direct exposure concentrated on global high-end and customer brands. 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 launch in April pending a final approval from ADX.

Q1 2026 revealed some development connecting to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted belief and prices during the quarter, it has actually driven more volume and interest in regional assets.

Why Is Operational Excellence Crucial for 2026 Expansion?

Regardless of continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, preserving positive growth momentum in the last few years. While disputes in the broader area and worldwide economic uncertainty remain a structural restraint, GCC nations have actually up until now restricted their effect on domestic economic performance through strong fiscal positions, policy continuity, and continual financial investment.

The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly 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 positive general conditions.

The IMF's World Economic Outlook (October 2025) projects international growth alleviating 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 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 local threat conditions stay contained and reform momentum holds.

Strategic Planning for GCC Success

Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to increase as governments broaden financial investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and increasing investment in technology and AI-related facilities.

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

The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift toward more favorable general conditions.

The IMF's World Economic Outlook (October 2025) tasks international development easing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing 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, reinforcing the GCC's status as a relatively high-growth pocketprovided that regional threat conditions remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

Advanced Planning for Regional Excellence

Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to rise as federal governments broaden financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across 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 innovation and AI-related infrastructure.

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