Why Is Operational Excellence Crucial for 2026 Growth?

The sector also dealt with broader macro headwinds, including a more careful policy background in China and global risk-off belief driven by geopolitical stress and greater energy costs. Thematic ETFs also struggled for the most part, particularly those connected to carbon and high-growth innovation, as appraisal pressures and global rate dynamics weighed on performance.

The petrochemical ETF considerably outperformed. Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allowance rather than broad market participation. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a small number of products attracting brand-new capital. This suggests that financiers were targeting specific exposures, while lowering or turning out of others.

Trading activity stayed 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 taken location in the secondary market, enabling financiers to change positions without substantial primary creations or redemptions.

In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure focused 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 final approval from ADX.

Q1 2026 showed some progress associating with ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually affected sentiment and prices during the quarter, it has driven more volume and interest in regional assets.

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Despite ongoing geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, keeping positive development momentum in current years. While disputes in the wider area and international financial uncertainty remain a structural constraint, GCC countries have up until now limited their effect on domestic financial efficiency through strong fiscal positions, policy connection, and sustained financial investment.

The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift towards more positive general conditions.

The IMF's World Economic Outlook (October 2025) jobs global growth alleviating 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 contrast, a 4.44.5 percent GCC expansion would put 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 risk conditions stay included and reform momentum holds.

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Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to increase as federal 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, improving credit conditions, and rising investment in innovation and AI-related facilities.

Public-sector investment and reform stay main to sustaining this trend. Policy measures targeted at drawing in foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play a helpful role in 2026.

3.2 percent development in 2025, speeding up 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 general conditions.

The IMF's World Economic Outlook (October 2025) jobs international development reducing 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 growth would place 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 reasonably high-growth pocketprovided that regional threat conditions remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

Advanced Strategy for Regional Success

Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to increase as governments broaden investment in services, facilities, 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, enhancing credit conditions, and rising investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform remain main to sustaining this trend. Policy procedures focused on bring in foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play an encouraging role in 2026.