Driving Operational Excellence in the Middle East

The sector likewise faced broader macro headwinds, including a more cautious policy background in China and international risk-off belief driven by geopolitical stress and higher energy rates. Thematic ETFs also struggled for the a lot of part, especially those connected to carbon and high-growth innovation, as valuation pressures and international rate characteristics weighed on performance.

The petrochemical ETF considerably outshined. Circulations in Q1 2026 were modest and extremely focused, showing selective allotment rather than broad market involvement. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with only a small number of items attracting new capital. This shows that investors were targeting particular exposures, while decreasing or turning out of others.

Trading activity remained steady, 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 financiers to change positions without significant primary creations or redemptions.

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

Q1 2026 revealed some progress associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected sentiment and costs during the quarter, it has driven more volume and interest in local possessions.

How to Leverage Market Intelligence for 2026 Growth

Regardless of ongoing geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, preserving favorable development momentum in the last few years. While disputes in the broader region and international economic uncertainty stay a structural restriction, GCC nations have up until now limited their effect on domestic economic performance through strong fiscal positions, policy continuity, and continual financial investment.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. 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 towards more positive total conditions.

The IMF's World Economic Outlook (October 2025) projects global development easing 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 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 local risk conditions remain included and reform momentum holds.

Emerging Shifts in the 2026 GCC Economy

Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to rise as governments expand 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, improving credit conditions, and increasing investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform stay main to sustaining this trend. Policy measures intended at drawing in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play an encouraging function 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 Sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive overall conditions.

The IMF's World Economic Outlook (October 2025) jobs international development reducing 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 growth would position the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that local danger conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Corporate Strategy for GCC Leadership

Information 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 rise as federal governments broaden investment in services, facilities, 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 rising investment in technology and AI-related facilities.

Public-sector investment and reform stay central to sustaining this pattern. Policy measures targeted at bring in foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a supportive role in 2026.