How Does Operational Excellence Essential for 2026 Expansion?

The sector also faced broader macro headwinds, consisting of a more careful policy backdrop in China and global risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs Struggled for the many part, particularly those linked to carbon and high-growth technology, as valuation pressures and global rate characteristics weighed on performance.

Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allocation rather than broad market involvement. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with only a small number of products attracting brand-new capital.

Trading activity remained constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Many activity appears to have taken place in the secondary market, allowing investors to adjust positions without substantial primary developments or redemptions.

In January, Boreas launched its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure concentrated on worldwide luxury 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 worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually affected sentiment and rates throughout the quarter, it has driven more volume and interest in local properties.

Key Data From Latest GCC Market Research Reports

In spite of continuous geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, keeping favorable growth momentum over the last few years. While conflicts in the wider region and global economic uncertainty remain a structural constraint, GCC nations have actually up until now restricted their influence on domestic financial efficiency through strong fiscal positions, policy connection, and continual financial investment.

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. 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 toward more favorable general conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide growth alleviating to 3.1 percent in 2026, with advanced 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 somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.

Why Is Business Excellence Essential for Future Growth?

Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has 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 predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising investment in technology and AI-related infrastructure.

Public-sector financial investment and reform remain main to sustaining this pattern. Policy measures intended at drawing in foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation 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 earnings are anticipated to play an encouraging function in 2026.

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) tasks international growth alleviating 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 region 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 relatively high-growth pocketprovided that local threat conditions remain consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Strategic Planning for Middle East Success

Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to rise as governments broaden investment in services, infrastructure, 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 investment and reform stay central to sustaining this pattern. Policy steps aimed at drawing in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are expected to play an encouraging function in 2026.