Comparing Future-Focused Models Versus Legacy Business

The sector also dealt with more comprehensive macro headwinds, including a more careful policy background in China and international risk-off sentiment driven by geopolitical stress and higher energy prices. Thematic ETFs likewise struggled for the most part, especially those linked to carbon and high-growth innovation, as appraisal pressures and global rate dynamics weighed on performance.

The petrochemical ETF significantly exceeded. Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allowance instead of broad market participation. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a small number of products drawing in new capital. This suggests that investors were targeting specific exposures, while decreasing or rotating out of others.

Trading activity stayed stable, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Many activity appears to have taken location in the secondary market, making it possible for financiers to adjust positions without considerable main developments or redemptions.

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

Q1 2026 showed some progress relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and prices during the quarter, it has driven more volume and interest in local assets.

Advanced Strategy for Regional Excellence

Despite continuous geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, preserving positive growth momentum recently. While conflicts in the larger area and worldwide financial uncertainty stay a structural restraint, GCC countries have so far limited their influence on domestic financial performance through strong fiscal positions, policy continuity, and sustained investment.

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

The IMF's World Economic Outlook (October 2025) projects international development alleviating to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would position 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 threat conditions stay consisted of and reform momentum holds.

Key Trends in the Future Middle East Market

Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to increase as federal governments expand 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 facilities.

Public-sector financial investment and reform remain central to sustaining this trend. Policy measures intended at drawing in foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a helpful role in 2026.

3.2 percent development 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, reflecting a shift towards more favorable general conditions.

The IMF's World Economic Outlook (October 2025) tasks worldwide development reducing 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 comparison, a 4.44.5 percent GCC growth would put 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 regional threat conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Advanced Strategy for Regional Success

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 federal governments expand financial investment in services, facilities, and technology. 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 investment in innovation and AI-related infrastructure.

Public-sector investment and reform stay main to sustaining this trend. Policy steps focused on bring 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 price volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated to play an encouraging function in 2026.