Corporate Strategy for Middle East Excellence

The sector likewise faced more comprehensive macro headwinds, consisting of a more cautious policy background in China and international risk-off sentiment driven by geopolitical stress and greater energy rates. Thematic ETFs also struggled for the most part, particularly those linked to carbon and high-growth innovation, as appraisal pressures and international rate characteristics weighed on performance.

The petrochemical ETF significantly surpassed. Flows in Q1 2026 were modest and extremely focused, reflecting selective allocation instead of broad market involvement. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with only a little number of products attracting brand-new capital. This shows that financiers were targeting particular exposures, while reducing or rotating out of others.

Trading activity remained consistent, 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 actually happened in the secondary market, allowing investors to adjust positions without considerable main productions or redemptions. While recent geopolitical occasions have actually resulted in more monetary pressure on GCC countries, the region remains resistant and well capitalized to deal with the situation.

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

Q1 2026 showed some development relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected belief and costs throughout the quarter, it has actually driven more volume and interest in local assets.

Corporate Planning for Middle East Leadership

Despite continuous geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, keeping positive growth momentum over the last few years. While disputes in the broader region and international financial uncertainty stay a structural constraint, GCC countries have actually up until now limited their impact on domestic economic efficiency through strong financial positions, policy connection, and continual investment.

The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive total conditions.

The IMF's World Economic Outlook (October 2025) jobs international development easing to 3.1 percent in 2026, with advanced 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 place the region 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 danger conditions stay consisted of and reform momentum holds.

How to Leverage Market Intelligence for 2026 Growth

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 actually continued to increase as governments expand financial investment in services, infrastructure, and innovation. 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, enhancing credit conditions, and rising financial investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform stay central to sustaining this pattern. Policy steps targeted at drawing in foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated 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 development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable general conditions.

The IMF's World Economic Outlook (October 2025) jobs global development alleviating to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth would put the region materially ahead of the world average and somewhat 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+

Ways to Utilize Market Intelligence for 2026 Success

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 increase as federal governments expand 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 rising financial investment in innovation and AI-related facilities.

Public-sector financial investment and reform remain central to sustaining this pattern. Policy procedures aimed at drawing in foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a supportive role in 2026.