Corporate Strategy for Middle East Success

The sector likewise dealt with broader macro headwinds, consisting of a more cautious policy background in China and worldwide risk-off sentiment driven by geopolitical stress and greater energy rates. Thematic ETFs likewise struggled for the most part, especially those connected to carbon and high-growth innovation, as appraisal pressures and global rate dynamics weighed on performance.

The petrochemical ETF substantially surpassed. Flows in Q1 2026 were modest and highly focused, reflecting selective allotment rather than broad market participation. 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. This shows that financiers were targeting particular direct exposures, while minimizing or rotating out of others.

Trading activity remained constant, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have taken place in the secondary market, making it possible for financiers to adjust positions without significant primary productions or redemptions.

In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure concentrated on international luxury and customer 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 expected to release in April pending a final approval from ADX.

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

Why Is Business Excellence Vital for Future Growth?

In spite of continuous geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, preserving positive growth momentum recently. While conflicts in the wider area and international economic uncertainty remain a structural restraint, GCC nations have so far limited their effect on domestic economic efficiency through strong fiscal positions, policy continuity, and continual investment.

The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift toward more favorable general conditions.

The IMF's World Economic Outlook (October 2025) projects international growth reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would position the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that local danger conditions remain consisted of and reform momentum holds.

How Does Operational Excellence Crucial for 2026 Expansion?

Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall 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 projected 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 facilities.

Public-sector financial investment and reform stay main to sustaining this pattern. Policy procedures focused on bring in foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play a supportive role in 2026.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable general conditions.

The IMF's World Economic Outlook (October 2025) tasks worldwide growth relieving 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 a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that local threat conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

How Is Business Excellence Crucial for 2026 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 rise as federal governments expand financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is forecasted 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 infrastructure.

Public-sector financial investment and reform remain main to sustaining this pattern. Policy procedures intended at bring in foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play an encouraging role in 2026.