How to Leverage GCC Research for Growth

The sector also faced wider macro headwinds, consisting of a more mindful policy backdrop in China and global risk-off sentiment driven by geopolitical stress and greater energy prices. Thematic ETFs also struggled for the many part, particularly those connected to carbon and high-growth innovation, as evaluation pressures and international rate characteristics weighed on performance.

The petrochemical ETF substantially outperformed. Flows in Q1 2026 were modest and highly focused, showing selective allowance instead of broad market participation. Despite weak performance, ETFs taped $27.1 million in net inflows, with only a small number of products bring in brand-new capital. This indicates that investors were targeting specific direct exposures, while lowering or turning out of others.

Trading activity remained consistent, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have actually taken place in the secondary market, making it possible for financiers to change positions without substantial main creations or redemptions.

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

Q1 2026 showed some progress associating with ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected sentiment and rates throughout the quarter, it has actually driven more volume and interest in regional properties.

How Is Operational Excellence Vital for Future Growth?

In spite of continuous geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, keeping positive development momentum in current years. While disputes in the broader area and global economic unpredictability remain a structural constraint, GCC countries have up until now limited their effect on domestic financial efficiency through strong financial positions, policy continuity, and continual 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 toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) tasks worldwide development reducing to 3.1 percent in 2026, with sophisticated 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 position the region 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 regional threat conditions stay included and reform momentum holds.

Ways to Leverage GCC Intelligence for Success

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 continued to rise as governments expand 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 financial investment in innovation and AI-related facilities.

Public-sector investment and reform remain central to sustaining this pattern. Policy measures targeted at attracting foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play an encouraging role in 2026.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable general conditions.

The IMF's World Economic Outlook (October 2025) projects global growth reducing to 3.1 percent in 2026, with innovative 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 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 reasonably high-growth pocketprovided that regional threat conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

Why Is Business Excellence Crucial for 2026 Growth?

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 rise as federal governments expand financial investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising financial investment in technology and AI-related facilities.

Public-sector financial investment and reform stay central to sustaining this pattern. Policy steps focused on attracting foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are expected to play a helpful function in 2026.