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The sector also dealt with broader macro headwinds, including a more careful policy background in China and worldwide risk-off sentiment driven by geopolitical stress and greater energy rates. Thematic ETFs Had a hard time for the a lot of part, particularly those linked to carbon and high-growth technology, as evaluation pressures and international rate characteristics weighed on efficiency.
The petrochemical ETF substantially exceeded. Flows in Q1 2026 were modest and highly focused, reflecting selective allowance instead of broad market participation. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a small number of items drawing in brand-new capital. This suggests that financiers were targeting particular direct exposures, while lowering or turning out of others.
Trading activity stayed constant, 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 place in the secondary market, enabling financiers to change positions without substantial primary productions or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused on international high-end and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted sentiment and rates during the quarter, it has driven more volume and interest in regional assets.
Despite ongoing geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, preserving positive development momentum in the last few years. While conflicts in the broader area and international financial unpredictability stay a structural constraint, GCC nations have so far limited their effect on domestic financial performance through strong financial positions, policy continuity, and sustained financial 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 growth projected to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift towards more positive overall conditions.
The Improvement of Local Commerce in Saudi Service HubsThe IMF's World Economic Outlook (October 2025) jobs global development reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would put the region 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 threat conditions stay consisted of 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 expand financial investment in services, facilities, and innovation. 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 infrastructure.
Public-sector financial investment and reform remain main to sustaining this pattern. Policy measures focused on attracting foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the region's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play a helpful function in 2026.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would position the region 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 relatively high-growth pocketprovided that local danger conditions remain contained 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 actually 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, improving credit conditions, and rising financial investment in innovation and AI-related facilities.
The Conclusive Guide to Saudi Arabia's Unique Economic ZonesPublic-sector investment and reform stay central to sustaining this pattern. Policy measures intended at drawing in foreign direct financial investment, alleviating foreign ownership rules, broadening 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 revenues are anticipated to play a helpful function in 2026.
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