Strategic Planning for Middle East Leadership

The sector likewise faced more comprehensive macro headwinds, including a more mindful policy background in China and global risk-off belief driven by geopolitical stress and greater energy costs. Thematic ETFs likewise struggled for the many part, particularly those connected to carbon and high-growth innovation, as assessment pressures and global rate characteristics weighed on performance.

The petrochemical ETF considerably exceeded. Flows in Q1 2026 were modest and highly focused, reflecting selective allowance instead of broad market participation. Regardless of weak efficiency, ETFs taped $27.1 million in net inflows, with only a small number of products attracting new capital. This suggests that investors were targeting particular direct exposures, while minimizing or turning out of others.

Trading activity remained constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have actually occurred in the secondary market, allowing investors to adjust positions without substantial primary creations or redemptions. While recent geopolitical events have led to more monetary pressure on GCC nations, the area remains durable and well capitalized to handle 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 introduce in April pending a last approval from ADX.

Q1 2026 showed some development associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually impacted belief and rates throughout the quarter, it has actually driven more volume and interest in local possessions.

Major Trends in the 2026 GCC Market

Despite ongoing geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, preserving positive development momentum in the last few years. While conflicts in the larger area and global economic uncertainty stay a structural restriction, GCC nations have actually so far restricted their impact on domestic financial efficiency through strong fiscal positions, policy connection, and sustained investment.

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

The IMF's World Economic Outlook (October 2025) tasks global growth alleviating to 3.1 percent in 2026, with innovative 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 position the area 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 regional risk conditions remain consisted of and reform momentum holds.

Why Is Operational Excellence Vital for 2026 Expansion?

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 investment in services, facilities, and innovation. 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, enhancing credit conditions, and increasing financial investment in innovation and AI-related facilities.

Public-sector financial investment and reform remain central to sustaining this trend. Policy procedures focused on attracting foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play an encouraging role in 2026.

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) jobs global growth relieving 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 place the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Ways to Utilize Market Research for 2026 Success

Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden financial 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 innovation and AI-related facilities.

Public-sector financial investment and reform stay central to sustaining this pattern. Policy measures focused on bring in foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a supportive function in 2026.