Strategic Strategy for Middle East Excellence

The sector also dealt with more comprehensive macro headwinds, including a more mindful policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and greater energy rates. Thematic ETFs likewise had a hard time for the most part, especially those connected to carbon and high-growth innovation, as evaluation pressures and worldwide rate characteristics weighed on performance.

The petrochemical ETF significantly outshined. Flows in Q1 2026 were modest and highly focused, reflecting selective allowance instead of broad market participation. Despite weak performance, ETFs recorded $27.1 million in net inflows, with only a small number of products drawing in brand-new capital. This suggests that financiers were targeting particular direct exposures, while reducing or turning out of others.

Trading activity remained constant, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually taken location in the secondary market, making it possible for financiers to change positions without substantial main creations or redemptions.

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

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

Strategic Planning for GCC Success

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

The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF 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 overall conditions.

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

How Is Operational Excellence Essential for 2026 Growth?

Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to rise as federal governments expand financial 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 investment in technology and AI-related infrastructure.

Public-sector financial investment and reform remain central to sustaining this pattern. Policy steps 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 reduce the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play a supportive function in 2026.

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. 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 favorable general conditions.

The IMF's World Economic Outlook (October 2025) jobs global development easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would place the area 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 relatively high-growth pocketprovided that regional risk conditions remain consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Corporate Strategy for Middle East Excellence

Information 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 rise as federal governments expand 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, improving credit conditions, and rising financial investment in innovation and AI-related facilities.

Public-sector financial investment and reform remain main to sustaining this trend. Policy procedures aimed at attracting foreign direct financial investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil profits are expected to play a helpful function in 2026.