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The sector likewise faced wider macro headwinds, consisting of a more cautious policy background in China and worldwide risk-off belief driven by geopolitical stress and higher energy costs. Thematic ETFs Had a hard time for the a lot of part, especially those linked to carbon and high-growth technology, as assessment pressures and international rate characteristics weighed on performance.
The petrochemical ETF substantially outperformed. Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allowance instead of broad market involvement. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a small number of items drawing in brand-new capital. This shows that investors were targeting particular exposures, while reducing or turning out of others.
Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have taken location in the secondary market, allowing investors to adjust positions without substantial main developments or redemptions. While current geopolitical occasions have led to more monetary pressure on GCC countries, the region stays durable and well capitalized to handle the scenario.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a niche thematic exposure focused on global luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development connecting to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC throughout 2026. While the conflict has affected sentiment and rates throughout the quarter, it has driven more volume and interest in local assets.
Regardless of ongoing geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, maintaining positive growth momentum in recent years. While conflicts in the broader region and worldwide financial uncertainty stay a structural restraint, GCC nations have actually so far restricted their impact on domestic financial efficiency through strong fiscal positions, policy connection, and sustained investment.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly 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 favorable overall conditions.
How to Enhance GCC Business PlanningThe IMF's World Economic Outlook (October 2025) jobs international growth reducing 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 put 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 regional danger conditions stay included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to increase as governments broaden 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 remain main to sustaining this trend. Policy steps focused on attracting foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play a helpful function in 2026.
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, showing a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) tasks global growth reducing 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 comparison, 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, strengthening the GCC's status as a reasonably high-growth pocketprovided that local danger conditions remain included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to rise as federal 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 rising financial investment in innovation and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this trend. Policy measures intended at attracting foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play an encouraging role in 2026.
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