Comparing Modern Strategies Against Traditional Frameworks

The sector likewise dealt with broader macro headwinds, consisting of a more cautious policy backdrop in China and worldwide risk-off sentiment driven by geopolitical tensions and greater energy costs. Thematic ETFs Struggled for the most part, particularly those connected to carbon and high-growth technology, as valuation pressures and worldwide rate characteristics weighed on performance.

The petrochemical ETF substantially surpassed. Circulations in Q1 2026 were modest and highly concentrated, showing selective allocation rather than broad market involvement. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with just a small number of items attracting brand-new capital. This indicates that investors were targeting particular exposures, while lowering or rotating out of others.

Trading activity stayed constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have actually happened in the secondary market, making it possible for investors to change positions without significant primary creations or redemptions. While recent geopolitical occasions have actually led to more monetary pressure on GCC countries, the area remains resilient and well capitalized to deal with the situation.

In January, Boreas released its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure concentrated on international high-end and consumer brand names. 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 introduce in April pending a last approval from ADX.

Q1 2026 revealed some progress connecting to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and rates during the quarter, it has actually driven more volume and interest in local properties.

How to Leverage GCC Research for Growth

Despite continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, preserving positive growth momentum over the last few years. While disputes in the wider region and international economic unpredictability remain a structural restraint, GCC countries have actually so far limited their effect on domestic economic performance through strong financial positions, policy connection, 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 development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive general conditions.

The IMF's World Economic Outlook (October 2025) tasks international development reducing 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 contrast, a 4.44.5 percent GCC expansion would place 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 relatively high-growth pocketprovided that local threat conditions stay contained and reform momentum holds.

Managing the 2026 GCC Business Environment for Executives

Data from the GCC Statistical Center reveal that non-oil sectors already 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 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 technology and AI-related infrastructure.

Public-sector investment and reform remain central to sustaining this pattern. Policy procedures focused on attracting foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a supportive function in 2026.

The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive general conditions.

The IMF's World Economic Outlook (October 2025) projects 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 contrast, a 4.44.5 percent GCC expansion would place the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that local danger conditions stay included and reform momentum holds.

ANSR July GCC PRs 50DR+

Ways to Utilize GCC Intelligence for 2026 Success

Data from the GCC Statistical Center reveal 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 projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing financial investment in technology and AI-related facilities.

Public-sector financial investment and reform remain central to sustaining this trend. Policy procedures intended at drawing in foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a helpful role in 2026.