Expanding Industrial Operations Within Dubai and the GCC

The sector also dealt with more comprehensive macro headwinds, consisting of a more careful policy background in China and international risk-off belief driven by geopolitical stress and higher energy rates. Thematic ETFs also struggled for the a lot of part, particularly those connected to carbon and high-growth innovation, as valuation pressures and international rate dynamics weighed on performance.

The petrochemical ETF considerably exceeded. Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allowance rather than broad market involvement. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a little number of products bring in new capital. This suggests that financiers were targeting specific direct exposures, while reducing or turning out of others.

Trading activity remained steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually occurred in the secondary market, allowing financiers to change positions without substantial main creations or redemptions. While current geopolitical occasions have led to more monetary pressure on GCC nations, the region remains resilient and well capitalized to handle the scenario.

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

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

Strategic Strategy for Middle East Excellence

Despite continuous geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, maintaining favorable growth momentum in the last few years. While conflicts in the broader region and global economic unpredictability stay a structural constraint, GCC nations have actually so far limited their effect on domestic financial performance through strong fiscal positions, policy connection, and continual investment.

The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating 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 favorable overall conditions.

The IMF's World Economic Outlook (October 2025) projects global 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 put the area 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 fairly high-growth pocketprovided that local threat conditions remain consisted of and reform momentum holds.

Why Does Operational Excellence Vital for Future 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 federal governments broaden investment in services, infrastructure, and innovation. 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, enhancing credit conditions, and rising financial investment in innovation and AI-related facilities.

Public-sector investment and reform remain central to sustaining this pattern. Policy steps focused on bring in foreign direct investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play an encouraging function in 2026.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted 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 worldwide development easing 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 growth would place 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 fairly high-growth pocketprovided that local risk conditions remain contained and reform momentum holds.

ANSR July GCC PRs 50DR+

How Is Operational Excellence Crucial for 2026 Growth?

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

Public-sector financial investment and reform stay main to sustaining this pattern. Policy steps focused on attracting foreign direct investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play an encouraging function in 2026.