Advanced Strategy for GCC Leadership

The sector also faced more comprehensive macro headwinds, consisting of a more careful policy backdrop in China and international risk-off belief driven by geopolitical stress and greater energy costs. 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 dynamics weighed on efficiency.

The petrochemical ETF substantially surpassed. Flows in Q1 2026 were modest and extremely focused, reflecting selective allotment rather than broad market participation. Regardless of weak efficiency, ETFs taped $27.1 million in net inflows, with only a little number of items attracting new capital. This indicates that investors were targeting specific exposures, while minimizing or rotating out of others.

Trading activity remained stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Most activity appears to have actually taken location in the secondary market, enabling financiers to change positions without substantial primary developments or redemptions. While recent geopolitical events have resulted in more financial pressure on GCC nations, the region remains resistant and well capitalized to handle the scenario.

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

Q1 2026 showed some progress connecting to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected sentiment and rates throughout the quarter, it has driven more volume and interest in regional assets.

Ways to Leverage Market Intelligence for Growth

Despite ongoing geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, keeping positive development momentum recently. While conflicts in the larger area and worldwide financial uncertainty remain a structural constraint, GCC countries have so far restricted their influence on domestic financial efficiency through strong financial positions, policy continuity, and continual financial investment.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to rise 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) jobs global 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 put 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 relatively high-growth pocketprovided that regional danger conditions stay consisted of and reform momentum holds.

Driving Strategic Excellence in the Middle East

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 federal governments broaden investment in services, infrastructure, and innovation. 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, enhancing credit conditions, and increasing investment in innovation and AI-related infrastructure.

Public-sector investment and reform stay central to sustaining this pattern. Policy procedures intended at attracting foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a supportive role in 2026.

3.2 percent growth in 2025, speeding up 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 worldwide growth reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would position 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 local danger conditions remain consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Strategic Strategy for GCC Leadership

Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments broaden financial 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 infrastructure.

Public-sector financial investment and reform remain central to sustaining this pattern. Policy measures targeted at attracting foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play a supportive function in 2026.