Why Does Operational Excellence Crucial for 2026 Expansion?

The sector also faced wider macro headwinds, consisting of a more mindful policy backdrop in China and global risk-off sentiment driven by geopolitical stress and higher energy costs. Thematic ETFs Had a hard time for the many part, especially those connected to carbon and high-growth technology, as valuation pressures and worldwide rate characteristics weighed on efficiency.

The petrochemical ETF significantly outshined. Flows in Q1 2026 were modest and extremely focused, showing selective allocation rather than broad market involvement. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of products attracting brand-new capital. This indicates that financiers were targeting particular exposures, while minimizing or rotating out of others.

Trading activity remained constant, with typical 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, enabling financiers to change positions without substantial primary creations or redemptions.

In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic direct exposure concentrated on worldwide high-end 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 showed some progress relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted sentiment and rates throughout the quarter, it has driven more volume and interest in regional possessions.

Why Is Operational Excellence Essential for Future Expansion?

Despite continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, keeping positive growth momentum in recent years. While conflicts in the larger region and international financial unpredictability remain a structural constraint, GCC countries have actually so far restricted their effect on domestic economic efficiency through strong financial positions, policy continuity, and continual financial investment.

The World Bank, on the other hand, jobs 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 favorable overall conditions.

The IMF's World Economic Outlook (October 2025) jobs international development easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would put 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 relatively high-growth pocketprovided that local danger conditions remain contained and reform momentum holds.

Strategic Strategy for GCC Leadership

Data 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, facilities, and technology. 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, enhancing credit conditions, and rising investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform stay central to sustaining this trend. Policy procedures focused on drawing in foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are expected to play a supportive function in 2026.

The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) tasks international development relieving to 3.1 percent in 2026, with innovative 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 slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that local threat conditions remain consisted of and reform momentum holds.

ANSR July GCC PRs 50DR+

Ways to Leverage GCC Intelligence for 2026 Growth

Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to increase as federal governments expand investment in services, facilities, 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, enhancing credit conditions, and rising investment in innovation and AI-related facilities.

Public-sector investment and reform remain central to sustaining this pattern. Policy steps focused on bring in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play an encouraging role in 2026.