Expanding Industrial Operations Within Dubai and the GCC

The sector also faced wider macro headwinds, consisting of a more cautious policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and greater energy prices. Thematic ETFs Struggled for the most part, particularly those connected to carbon and high-growth technology, as evaluation pressures and global rate characteristics weighed on efficiency.

The petrochemical ETF considerably exceeded. Flows in Q1 2026 were modest and highly focused, reflecting selective allotment rather than broad market participation. Despite weak performance, ETFs taped $27.1 million in net inflows, with just a small number of items drawing in new capital. This suggests that investors were targeting specific exposures, while lowering or rotating out of others.

Trading activity remained steady, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Many activity appears to have taken place in the secondary market, making it possible for financiers to adjust positions without significant main productions or redemptions. While recent geopolitical events have actually resulted in more financial pressure on GCC nations, the region stays resilient and well capitalized to handle the scenario.

In January, Boreas launched its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure focused on global high-end and customer brands. 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 launch in April pending a last approval from ADX.

Q1 2026 revealed some development connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected sentiment and prices throughout the quarter, it has driven more volume and interest in regional assets.

How to Leverage Market Intelligence for 2026 Success

In spite of ongoing geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, preserving positive growth momentum in recent years. While conflicts in the broader region and global financial unpredictability stay a structural restriction, GCC nations have so far restricted their effect on domestic economic performance through strong financial positions, policy continuity, and sustained investment.

The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift toward more positive overall conditions.

The IMF's World Economic Outlook (October 2025) tasks international growth reducing to 3.1 percent in 2026, with innovative 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 position 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 regional threat conditions stay included and reform momentum holds.

Comparing Modern Models Versus Traditional Business

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, facilities, and technology. 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, improving credit conditions, and increasing investment in technology and AI-related facilities.

Public-sector investment and reform stay central to sustaining this trend. Policy steps intended at drawing in foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play a helpful function in 2026.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. 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 toward more positive total conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide growth reducing 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 growth would put the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that regional threat conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Strategic Strategy for Regional Excellence

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

Public-sector investment and reform stay central to sustaining this trend. Policy procedures intended at drawing in foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play an encouraging function in 2026.