Achieving Strategic Excellence in the Middle East

The sector likewise faced broader macro headwinds, including a more cautious policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and greater energy costs. Thematic ETFs Had a hard time for the many part, especially those connected to carbon and high-growth innovation, as assessment pressures and international rate characteristics weighed on performance.

Flows in Q1 2026 were modest and extremely focused, showing selective allowance rather than broad market involvement. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a little number of items bring in brand-new capital.

Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have actually occurred in the secondary market, making it possible for financiers to change positions without significant main productions or redemptions. While recent geopolitical occasions have actually led to more monetary pressure on GCC countries, the area stays durable and well capitalized to deal with the situation.

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

Q1 2026 revealed some progress connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the dispute has impacted sentiment and prices during the quarter, it has actually driven more volume and interest in regional possessions.

Crucial Insights Within 2026 Regional Market Research Reports

Despite continuous geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, maintaining positive growth momentum recently. While disputes in the broader region and global economic uncertainty stay a structural constraint, GCC countries have actually so far restricted their effect on domestic financial 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 forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) tasks global development relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position 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 relatively high-growth pocketprovided that regional risk conditions remain consisted of and reform momentum holds.

Why Does Operational Excellence Crucial for Future Expansion?

Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to rise 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, improving credit conditions, and increasing investment in innovation and AI-related facilities.

Public-sector financial investment and reform stay central to sustaining this trend. Policy measures focused on attracting foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a supportive 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 likewise sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift towards more positive total conditions.

The IMF's World Economic Outlook (October 2025) tasks worldwide growth relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

Why Does Operational Excellence Essential for 2026 Expansion?

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 continued to increase 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, improving credit conditions, and rising financial investment in technology and AI-related facilities.

Public-sector investment and reform stay main to sustaining this trend. Policy steps aimed at bring in foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play an encouraging role in 2026.