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The sector also dealt with wider macro headwinds, consisting of a more cautious policy background in China and worldwide risk-off belief driven by geopolitical stress and greater energy costs. Thematic ETFs Had a hard time for the a lot of part, especially those linked to carbon and high-growth technology, as valuation pressures and worldwide rate dynamics weighed on efficiency.
The petrochemical ETF substantially surpassed. Circulations in Q1 2026 were modest and extremely concentrated, showing selective allocation instead of broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with just a little number of products bring in brand-new capital. This indicates that investors were targeting particular direct exposures, while lowering or rotating out of others.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. A lot of activity appears to have happened in the secondary market, enabling investors to change positions without considerable main productions or redemptions. While recent geopolitical events have resulted in more monetary pressure on GCC countries, the region remains resilient and well capitalized to handle the circumstance.
In January, Boreas released its S&P Global High-end UCITS ETF, including a specific niche thematic direct exposure focused on worldwide luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted sentiment and rates during the quarter, it has driven more volume and interest in local assets.
Despite continuous geopolitical stress and security threats across 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 conflicts in the larger area and global economic uncertainty remain a structural constraint, GCC nations have actually up until now limited their influence on domestic economic efficiency through strong financial positions, policy continuity, and continual investment.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects international development 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 comparison, a 4.44.5 percent GCC expansion would put the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that regional danger conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to rise as governments expand 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 increasing investment in technology and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this trend. Policy steps targeted at attracting foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated 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 growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development easing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC growth would place the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a relatively high-growth pocketprovided that local danger conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to increase as federal governments broaden investment in services, infrastructure, 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 increasing investment in innovation and AI-related infrastructure.
Comparing Legacy Models and Future Economic StrategiesPublic-sector investment and reform stay main to sustaining this pattern. Policy steps focused on drawing in foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play an encouraging role in 2026.
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