Achieving Strategic Excellence in the Middle East

The sector also faced more comprehensive macro headwinds, including a more cautious policy background in China and global risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs also had a hard time for the most part, particularly those connected to carbon and high-growth technology, as assessment pressures and worldwide rate dynamics weighed on performance.

Flows in Q1 2026 were modest and highly focused, reflecting selective allotment rather than broad market participation. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a small number of items bring in brand-new capital.

Trading activity remained stable, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have actually happened in the secondary market, allowing investors to adjust positions without considerable main creations or redemptions. While current geopolitical occasions have led to more monetary pressure on GCC countries, the region stays resilient and well capitalized to handle the scenario.

In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused on international high-end and consumer brands. ETFs by the CMA for cross-listing on ADX.

Q1 2026 revealed some progress connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the dispute has affected belief and rates during the quarter, it has actually driven more volume and interest in regional properties.

Strategic Strategy for Middle East Excellence

Despite continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, preserving positive growth momentum in current years. While conflicts in the larger area and international economic uncertainty stay a structural restraint, GCC countries have up until now limited their impact on domestic economic efficiency through strong fiscal positions, policy connection, and continual financial investment.

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

The IMF's World Economic Outlook (October 2025) jobs international growth reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would place the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that regional risk conditions remain contained and reform momentum holds.

Major Trends in the 2026 Middle East Market

Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments broaden financial 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, enhancing credit conditions, and rising financial investment in innovation and AI-related infrastructure.

Public-sector investment and reform remain central to sustaining this trend. Policy measures 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 growth and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play a helpful function in 2026.

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 forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive overall conditions.

The IMF's World Economic Outlook (October 2025) jobs global development relieving to 3.1 percent in 2026, with sophisticated 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 put the area 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 reasonably high-growth pocketprovided that regional risk conditions remain included and reform momentum holds.

ANSR July GCC PRs 50DR+

How Is Business Excellence Vital for Future Expansion?

Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to increase as federal governments expand financial investment in services, facilities, and innovation. 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 increasing investment in innovation and AI-related facilities.

Public-sector financial investment and reform remain main to sustaining this pattern. Policy procedures targeted at attracting foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a supportive function in 2026.