Strategic Strategy for GCC Success

The sector likewise dealt with wider macro headwinds, consisting of a more careful policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and greater energy costs. Thematic ETFs likewise struggled for the most part, especially those connected to carbon and high-growth innovation, as evaluation pressures and global rate characteristics weighed on efficiency.

Flows in Q1 2026 were modest and highly concentrated, showing selective allotment rather than broad market involvement. Regardless of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a small number of products bring in brand-new capital.

Trading activity stayed stable, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have taken location in the secondary market, allowing investors to change positions without substantial main creations or redemptions.

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

Q1 2026 showed some development connecting to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted belief and costs during the quarter, it has driven more volume and interest in regional properties.

Why Is Operational Excellence Crucial for 2026 Growth?

Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, keeping favorable development momentum over the last few years. While disputes in the larger region and global financial uncertainty remain a structural restriction, GCC nations have so far restricted their influence on domestic financial efficiency through strong fiscal positions, policy continuity, and sustained investment.

The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development 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) jobs global development reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would position the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that local threat conditions stay consisted of and reform momentum holds.

Strategic Planning for Regional Excellence

Information from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments broaden financial investment in services, facilities, 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, improving credit conditions, and increasing investment in technology and AI-related infrastructure.

Public-sector investment and reform remain central to sustaining this trend. Policy procedures targeted at attracting foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a supportive function in 2026.

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

The IMF's World Economic Outlook (October 2025) tasks global development relieving 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 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, reinforcing the GCC's status as a relatively high-growth pocketprovided that regional threat conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Why Is Operational Excellence Crucial for 2026 Expansion?

Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to increase as governments broaden financial investment in services, facilities, 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, improving credit conditions, and rising investment in innovation and AI-related infrastructure.

Public-sector investment and reform remain central to sustaining this trend. Policy measures aimed at drawing in foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play a helpful function in 2026.