Advanced Strategy for Middle East Success

The sector also dealt with more comprehensive macro headwinds, including a more mindful policy backdrop in China and global risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs also had a hard time for the most part, particularly those linked to carbon and high-growth technology, as evaluation pressures and international rate dynamics weighed on performance.

Flows in Q1 2026 were modest and extremely focused, reflecting selective allotment rather than broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with only a little number of products bring in new capital.

Trading activity stayed stable, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. A lot of activity appears to have taken place in the secondary market, making it possible for investors to adjust positions without significant primary creations or redemptions.

In January, Boreas launched its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure concentrated on worldwide 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 launch in April pending a final approval from ADX.

Q1 2026 showed some progress connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected belief and prices throughout the quarter, it has actually driven more volume and interest in regional possessions.

Why Is Operational Excellence Crucial for Future Growth?

Despite ongoing geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, keeping positive growth momentum in current years. While disputes in the larger region and global economic unpredictability stay a structural constraint, GCC nations have up until now restricted their influence on domestic economic performance through strong financial positions, policy continuity, and sustained financial investment.

3.2 percent development 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, reflecting a shift towards more positive total conditions.

The IMF's World Economic Outlook (October 2025) tasks international 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 place the area 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 fairly high-growth pocketprovided that regional threat conditions remain consisted of and reform momentum holds.

Why Is Business Excellence Essential for 2026 Expansion?

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

Public-sector investment and reform remain central to sustaining this trend. Policy steps targeted at bring in foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play a supportive role in 2026.

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

The IMF's World Economic Outlook (October 2025) tasks international development relieving 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 contrast, 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 relatively high-growth pocketprovided that regional risk conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

Strategic Strategy for Regional Leadership

Information 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 federal governments expand financial investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity across the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising financial investment in innovation and AI-related infrastructure.

Public-sector investment and reform stay central to sustaining this trend. Policy procedures aimed at drawing in foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play an encouraging function in 2026.