How Does Operational Excellence Essential for Future Growth?

The sector also faced more comprehensive macro headwinds, consisting of a more careful policy backdrop in China and global risk-off belief driven by geopolitical tensions and higher energy costs. Thematic ETFs likewise had a hard time for the most part, particularly those linked to carbon and high-growth innovation, as evaluation pressures and worldwide rate characteristics weighed on efficiency.

The petrochemical ETF considerably surpassed. Circulations in Q1 2026 were modest and extremely focused, reflecting selective allowance rather than broad market participation. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a small number of products bring in new capital. This indicates that financiers were targeting particular direct exposures, while decreasing or rotating out of others.

Trading activity stayed stable, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have taken location in the secondary market, enabling investors to adjust positions without substantial main productions or redemptions.

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

Q1 2026 showed some progress relating to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted sentiment and costs during the quarter, it has driven more volume and interest in regional possessions.

Ensuring Strategic Excellence in Regional Markets

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, keeping favorable growth momentum in current years. While conflicts in the broader region and global economic unpredictability stay a structural restriction, GCC nations have up until now limited their effect on domestic economic efficiency through strong financial positions, policy continuity, and continual investment.

The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable general conditions.

The IMF's World Economic Outlook (October 2025) jobs global growth 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 growth would put the region 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 fairly high-growth pocketprovided that local threat conditions remain contained and reform momentum holds.

Strategic Strategy for Middle East Leadership

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

Public-sector investment and reform stay central to sustaining this trend. Policy steps focused on bring in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are anticipated to play a helpful function in 2026.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable general conditions.

The IMF's World Economic Outlook (October 2025) tasks worldwide growth reducing 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 region 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 risk conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

How to Utilize GCC Intelligence for Success

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 expand financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across 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 infrastructure.

Public-sector financial 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 involvement continue to underpin non-oil growth and minimize the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are anticipated to play a supportive function in 2026.