Comparing Modern Models Against Traditional Frameworks

The sector likewise faced wider macro headwinds, including a more careful policy backdrop in China and global risk-off sentiment driven by geopolitical stress and higher energy costs. Thematic ETFs likewise had a hard time for the many part, particularly those linked to carbon and high-growth technology, as valuation pressures and global rate dynamics weighed on performance.

The petrochemical ETF substantially surpassed. Circulations in Q1 2026 were modest and highly focused, showing selective allotment instead of broad market involvement. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with only a little number of products attracting brand-new capital. This indicates that financiers were targeting particular exposures, while lowering or rotating out of others.

Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have occurred in the secondary market, making it possible for financiers to change positions without considerable main creations or redemptions. While current geopolitical events have actually resulted in more financial pressure on GCC countries, the area remains resilient and well capitalized to deal with the scenario.

In January, Boreas launched its S&P Global High-end UCITS ETF, adding a niche thematic exposure focused on international luxury and consumer brands. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are anticipated to launch in April pending a final approval from ADX.

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

Why Is Business Excellence Crucial for 2026 Expansion?

Regardless of ongoing geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, preserving favorable development momentum in the last few years. While disputes in the wider region and international economic unpredictability stay a structural restriction, GCC nations have actually up until now restricted their influence on domestic financial performance through strong financial positions, policy continuity, and continual investment.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development 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 international growth relieving to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth 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 reasonably high-growth pocketprovided that local threat conditions stay included and reform momentum holds.

How Does Business Excellence Essential for 2026 Expansion?

Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to rise as federal governments broaden investment in services, infrastructure, 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 investment and reform stay main to sustaining this pattern. Policy measures focused on bring in foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are anticipated to play an encouraging function in 2026.

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 growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive overall conditions.

The IMF's World Economic Outlook (October 2025) projects international growth easing 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 expansion would put the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that local risk conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

How to Leverage Market Intelligence for Success

Information 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 governments expand financial investment in services, infrastructure, and technology. 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, improving credit conditions, and increasing investment in technology and AI-related facilities.

Public-sector investment and reform remain main to sustaining this trend. Policy measures targeted at drawing in foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a helpful role in 2026.