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The sector likewise dealt with more comprehensive macro headwinds, consisting of a more careful policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and higher energy costs. Thematic ETFs Had a hard time for the most part, especially those connected to carbon and high-growth innovation, as assessment pressures and international rate dynamics weighed on efficiency.
The petrochemical ETF significantly surpassed. Flows in Q1 2026 were modest and extremely focused, showing selective allowance rather than broad market involvement. Regardless of weak efficiency, ETFs recorded $27.1 million in net inflows, with just a little number of items bring in new capital. This indicates that financiers were targeting specific direct exposures, while decreasing or turning out of others.
Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have actually taken location in the secondary market, enabling financiers to change positions without considerable main productions or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, including a specific niche thematic direct exposure focused on worldwide high-end and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress associating with ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the conflict has affected sentiment and rates during the quarter, it has driven more volume and interest in local possessions.
In spite of ongoing geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, keeping favorable growth momentum in the last few years. While disputes in the wider region and worldwide economic unpredictability stay a structural restriction, GCC countries have actually up until now restricted their effect on domestic financial performance through strong financial positions, policy continuity, and sustained financial investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide development alleviating 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 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 risk conditions stay included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to rise as governments broaden investment in services, facilities, and innovation. 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 technology and AI-related facilities.
Public-sector investment and reform remain main to sustaining this pattern. Policy measures focused on attracting foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil profits 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 projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth alleviating 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 expansion would position 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 fairly high-growth pocketprovided that local threat conditions stay contained and reform momentum holds.
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 actually continued to rise as federal governments broaden investment in services, facilities, and innovation. 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, improving credit conditions, and increasing financial investment in innovation and AI-related infrastructure.
Predicting the Next GCC Business LandscapePublic-sector investment and reform stay central to sustaining this trend. Policy steps intended at bring in foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play a helpful role in 2026.
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