Corporate Strategy for GCC Leadership

The sector also dealt with more comprehensive macro headwinds, consisting of a more mindful policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs Struggled for the many part, particularly those connected to carbon and high-growth technology, as valuation pressures and international rate dynamics weighed on performance.

Flows in Q1 2026 were modest and highly focused, reflecting selective allotment 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 items attracting brand-new capital.

Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Many activity appears to have occurred in the secondary market, enabling investors to adjust positions without significant main creations or redemptions. While current geopolitical events have actually led to more financial pressure on GCC countries, the area remains durable and well capitalized to deal with the circumstance.

In January, Boreas released its S&P Global High-end UCITS ETF, including a niche thematic exposure focused on international high-end 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 during 2026. While the dispute has impacted belief and costs during the quarter, it has actually driven more volume and interest in local properties.

Ways to Leverage Market Research for 2026 Growth

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

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

The IMF's World Economic Outlook (October 2025) jobs global growth reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC expansion 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 risk conditions stay consisted of and reform momentum holds.

Why Does Operational Excellence Vital for 2026 Growth?

Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to increase as governments expand financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform remain main to sustaining this trend. Policy procedures focused on bring in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated to play a helpful function in 2026.

3.2 percent development 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 global development easing to 3.1 percent in 2026, with sophisticated 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 relatively high-growth pocketprovided that local threat conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Why Does Business Excellence Essential for Future Expansion?

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 actually continued to increase as federal governments broaden financial investment in services, infrastructure, and innovation. 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 financial investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform stay main to sustaining this trend. Policy steps aimed at attracting foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a supportive role in 2026.