Comparing Innovative Models Against Legacy Frameworks

The sector likewise faced more comprehensive macro headwinds, consisting of a more cautious policy background in China and global risk-off belief driven by geopolitical tensions and higher energy costs. Thematic ETFs likewise struggled for the most part, particularly those connected to carbon and high-growth innovation, as assessment pressures and worldwide rate dynamics weighed on efficiency.

The petrochemical ETF significantly outperformed. Flows in Q1 2026 were modest and highly focused, showing selective allowance instead of broad market involvement. Despite weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of products attracting new capital. This shows that financiers were targeting particular exposures, while minimizing or turning out of others.

Trading activity stayed constant, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have taken place in the secondary market, enabling investors to change positions without substantial main developments or redemptions. While current geopolitical events have led to more monetary pressure on GCC countries, the area stays durable and well capitalized to deal with the circumstance.

In January, Boreas released its S&P Global High-end UCITS ETF, adding a niche thematic direct exposure concentrated on worldwide high-end and consumer 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 expected to introduce in April pending a last approval from ADX.

Q1 2026 showed some progress associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has impacted sentiment and costs throughout the quarter, it has driven more volume and interest in local properties.

How to Utilize Market Intelligence for Success

Regardless of continuous geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, maintaining positive growth momentum recently. While conflicts in the wider region and global financial uncertainty remain a structural constraint, GCC nations have actually up until now limited their impact on domestic financial efficiency through strong fiscal positions, policy continuity, and continual investment.

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 growth predicted to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) tasks global development 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 position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that regional risk conditions remain consisted of and reform momentum holds.

Corporate Planning for Middle East Leadership

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 actually continued to rise as governments broaden investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing financial investment in technology and AI-related infrastructure.

Public-sector investment and reform stay central to sustaining this trend. Policy measures targeted at attracting foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play an encouraging function in 2026.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) projects international development alleviating 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 comparison, a 4.44.5 percent GCC growth would put 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 danger conditions remain contained and reform momentum holds.

ANSR July GCC PRs 50DR+

How Does Operational Excellence Essential for Future Growth?

Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to rise as governments broaden investment in services, infrastructure, and technology. 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 technology and AI-related facilities.

Public-sector investment and reform remain central to sustaining this pattern. Policy steps targeted at attracting foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a supportive function in 2026.