Advanced Strategy for Regional Leadership

The sector also dealt with wider macro headwinds, consisting of a more mindful policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy costs. Thematic ETFs also struggled for the most part, especially those connected to carbon and high-growth technology, as appraisal pressures and international rate characteristics weighed on performance.

Flows in Q1 2026 were modest and highly concentrated, reflecting selective allocation rather than broad market participation. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a small number of items drawing in new capital.

Trading activity stayed stable, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have actually happened in the secondary market, making it possible for financiers to adjust positions without considerable main developments or redemptions. While recent geopolitical occasions have actually led to more financial pressure on GCC countries, the area remains resilient and well capitalized to handle the circumstance.

In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a niche thematic exposure focused on worldwide luxury and consumer brand names. ETFs by the CMA for cross-listing on ADX.

Q1 2026 revealed some progress associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually impacted belief and costs throughout the quarter, it has driven more volume and interest in regional possessions.

Advanced Strategy for Regional Leadership

Regardless of ongoing geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, keeping positive growth momentum over the last few years. While disputes in the larger region and worldwide economic unpredictability remain a structural constraint, GCC countries have actually up until now limited their influence on domestic economic efficiency through strong financial positions, policy continuity, and continual investment.

The World Bank, on the other hand, jobs 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) jobs global development relieving to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would position 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 relatively high-growth pocketprovided that regional danger conditions stay consisted of and reform momentum holds.

Corporate Strategy for Regional Leadership

Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to rise 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, enhancing credit conditions, and rising financial investment in technology and AI-related facilities.

Public-sector financial investment and reform stay main to sustaining this pattern. Policy steps aimed at bring in foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the area's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a supportive function in 2026.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable 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 comparison, 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 local danger conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Emerging Trends in the Future GCC Market

Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to increase 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, enhancing credit conditions, and rising financial investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform stay main to sustaining this trend. Policy steps targeted at bring in foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play a helpful role in 2026.