Managing the 2026 Regional Business Environment for Executives

The sector also faced wider macro headwinds, including a more careful policy background in China and worldwide risk-off sentiment driven by geopolitical stress and greater energy prices. Thematic ETFs Struggled for the many part, particularly those linked to carbon and high-growth innovation, as appraisal pressures and international rate characteristics weighed on efficiency.

The petrochemical ETF considerably exceeded. Flows in Q1 2026 were modest and highly focused, showing selective allotment rather than broad market participation. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with only a small number of products attracting new capital. This suggests that financiers were targeting specific exposures, while decreasing or turning out of others.

Trading activity stayed consistent, 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, enabling investors to adjust positions without considerable main developments or redemptions.

In January, Boreas introduced its S&P Global High-end UCITS ETF, including a specific niche thematic direct exposure focused on global high-end and customer brand names. ETFs by the CMA for cross-listing on ADX.

Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the conflict has impacted belief and rates during the quarter, it has actually driven more volume and interest in regional possessions.

How Is Operational Excellence Essential for Future Expansion?

Regardless of continuous geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, preserving positive development momentum in the last few years. While conflicts in the broader region and international economic unpredictability remain a structural constraint, GCC nations have actually so far restricted their effect on domestic financial performance through strong fiscal positions, policy continuity, and continual investment.

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable total conditions.

The IMF's World Economic Outlook (October 2025) jobs global growth relieving 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 growth would put the region 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 threat conditions stay consisted of and reform momentum holds.

Why Is Operational Excellence Essential for Future Expansion?

Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to increase as federal 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, improving credit conditions, and rising financial investment in technology and AI-related facilities.

Public-sector investment and reform stay central to sustaining this pattern. Policy measures targeted at attracting foreign direct financial investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement 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 incomes are anticipated to play a supportive function in 2026.

The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift towards more positive general conditions.

The IMF's World Economic Outlook (October 2025) tasks international 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 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 regional danger conditions stay consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Crucial Insights From 2026 Regional Market Research Reports

Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to rise as governments expand investment in services, infrastructure, and technology. 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 increasing investment in innovation and AI-related facilities.

Public-sector financial investment and reform stay main to sustaining this trend. Policy steps targeted at drawing in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are expected to play a supportive function in 2026.