Comparing Modern Strategies Versus Legacy Frameworks

The sector likewise dealt with broader macro headwinds, including a more cautious policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and greater energy costs. Thematic ETFs also struggled for the a lot of part, particularly those linked to carbon and high-growth technology, as valuation pressures and worldwide rate characteristics weighed on efficiency.

The petrochemical ETF considerably outperformed. Circulations in Q1 2026 were modest and extremely focused, showing selective allotment rather than broad market involvement. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a little number of products bring in new capital. This suggests that financiers were targeting particular direct exposures, while reducing or rotating out of others.

Trading activity remained stable, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have taken location in the secondary market, enabling investors to change positions without substantial main productions or redemptions.

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

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

How to Leverage GCC Research for 2026 Success

In spite of continuous geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, preserving favorable growth momentum recently. While conflicts in the broader region and global financial uncertainty stay a structural restraint, GCC countries have actually so far limited their effect on domestic economic 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, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift towards more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) projects international growth relieving to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that local danger conditions remain consisted of and reform momentum holds.

Why Does Operational Excellence Vital for 2026 Expansion?

Data 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 rise as governments expand investment in services, facilities, and technology. 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, improving credit conditions, and increasing financial investment in technology and AI-related infrastructure.

Public-sector investment and reform stay central to sustaining this pattern. Policy measures aimed at drawing in foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play an encouraging role in 2026.

The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive total conditions.

The IMF's World Economic Outlook (October 2025) projects international development alleviating to 3.1 percent in 2026, with sophisticated 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, strengthening the GCC's status as a reasonably high-growth pocketprovided that local threat conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

How 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 governments expand investment in services, infrastructure, and technology. 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, improving credit conditions, and rising investment in technology and AI-related facilities.

Public-sector investment and reform stay main to sustaining this pattern. Policy steps intended at bring in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play an encouraging function in 2026.