Advanced Planning for GCC Excellence

The sector likewise dealt with broader macro headwinds, consisting of a more mindful policy backdrop in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy rates. Thematic ETFs also struggled for the most part, particularly those connected to carbon and high-growth innovation, as appraisal pressures and worldwide rate characteristics weighed on performance.

The petrochemical ETF considerably outperformed. Flows in Q1 2026 were modest and highly focused, reflecting selective allocation instead of broad market involvement. Despite weak performance, ETFs recorded $27.1 million in net inflows, with just a small number of items drawing in new capital. This suggests that investors were targeting particular direct exposures, while decreasing or turning out of others.

Trading activity remained stable, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have happened in the secondary market, enabling financiers to adjust positions without considerable main productions or redemptions. While current geopolitical events have led to more financial pressure on GCC nations, the area remains 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 exposure focused on global high-end and consumer brand names. ETFs by the CMA for cross-listing on ADX.

Q1 2026 showed 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 actually impacted sentiment and costs throughout the quarter, it has driven more volume and interest in local assets.

Why Is Business Excellence Essential for Future Expansion?

Despite ongoing geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, preserving positive growth momentum in the last few years. While conflicts in the broader area and global economic uncertainty remain a structural restriction, GCC nations have up until now limited their influence on domestic financial efficiency through strong fiscal positions, policy connection, and continual investment.

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

The IMF's World Economic Outlook (October 2025) tasks worldwide development reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would position 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 fairly high-growth pocketprovided that local risk conditions stay contained and reform momentum holds.

How Is Operational Excellence Crucial for Future Expansion?

Information 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 increase as governments expand 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 investment in innovation and AI-related facilities.

Public-sector investment and reform stay main to sustaining this pattern. Policy steps aimed at bring in foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a helpful function in 2026.

The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive total conditions.

The IMF's World Economic Outlook (October 2025) jobs international development reducing 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 contrast, a 4.44.5 percent GCC expansion would place the area 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 local threat conditions remain consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Advanced Strategy for GCC Success

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 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 innovation and AI-related infrastructure.

Public-sector financial investment and reform stay central to sustaining this trend. Policy procedures intended at drawing in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play a supportive role in 2026.