Strategic Planning for Regional Excellence

The sector likewise dealt with more comprehensive macro headwinds, consisting of a more careful policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs also struggled for the a lot of part, particularly those linked to carbon and high-growth technology, as assessment pressures and global rate characteristics weighed on performance.

Flows in Q1 2026 were modest and highly concentrated, reflecting selective allotment rather than broad market participation. Regardless of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a small number of products bring in new capital.

Trading activity remained constant, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have taken location in the secondary market, allowing financiers to change positions without significant primary creations or redemptions. While current geopolitical occasions have actually led to more financial pressure on GCC countries, 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 specific niche thematic direct exposure concentrated on international high-end and customer 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 anticipated to release in April pending a final approval from ADX.

Q1 2026 revealed some progress connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has impacted sentiment and rates during the quarter, it has driven more volume and interest in local properties.

How Is Operational Excellence Vital for 2026 Expansion?

Despite continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, preserving favorable development momentum in recent years. While conflicts in the broader area and worldwide financial unpredictability remain a structural constraint, GCC countries have up until now limited their effect on domestic economic efficiency through strong financial positions, policy continuity, and continual financial investment.

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise 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) projects international growth 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 contrast, 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, strengthening the GCC's status as a fairly high-growth pocketprovided that local threat conditions stay consisted of and reform momentum holds.

Why Is Business Excellence Crucial for Future Expansion?

Data 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 increase as federal governments expand financial investment in services, infrastructure, and innovation. 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 rising financial investment in innovation and AI-related facilities.

Public-sector investment and reform stay main to sustaining this pattern. Policy measures focused on drawing in foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected to play a supportive role in 2026.

The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF likewise 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 total conditions.

The IMF's World Economic Outlook (October 2025) projects international development alleviating 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 comparison, a 4.44.5 percent GCC expansion would place the region materially ahead of the world average and slightly 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 remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

Ways to Utilize Market Intelligence for Growth

Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden financial investment in services, facilities, 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, improving credit conditions, and rising investment in innovation and AI-related infrastructure.

Public-sector investment and reform remain central to sustaining this trend. Policy steps targeted at drawing in foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a helpful role in 2026.