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The sector also faced broader macro headwinds, consisting of a more careful policy backdrop in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy costs. Thematic ETFs Had a hard time for the most part, particularly those linked to carbon and high-growth innovation, as assessment pressures and worldwide rate dynamics weighed on performance.
The petrochemical ETF significantly surpassed. Circulations in Q1 2026 were modest and extremely focused, showing selective allotment rather than broad market involvement. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with only a small number of items bring in new capital. This indicates that financiers were targeting specific exposures, while reducing or rotating out of others.
Trading activity stayed stable, 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 location in the secondary market, allowing investors to adjust positions without substantial main developments or redemptions. While recent geopolitical events have resulted in more financial pressure on GCC nations, the area remains resilient and well capitalized to deal with the scenario.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure focused on global luxury and consumer 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 during 2026. While the dispute has actually impacted belief and costs during 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 durability, maintaining favorable growth momentum in the last few years. While conflicts in the broader area and global financial uncertainty remain a structural restriction, GCC countries have so far restricted their impact on domestic financial performance through strong financial positions, policy continuity, and continual investment.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF likewise 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 toward more favorable total conditions.
Leading Organizational Change for Modern GCCThe IMF's World Economic Outlook (October 2025) tasks worldwide development reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position the area 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 danger conditions stay consisted of 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 rise as governments broaden 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, enhancing credit conditions, and rising investment in technology and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this trend. Policy measures focused on bring in foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play an encouraging role 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 likewise sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) jobs international development reducing 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 expansion would position 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 fairly high-growth pocketprovided that local danger 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 total GDP, a share that has actually continued to increase as federal governments broaden investment in services, facilities, and innovation. 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 technology and AI-related facilities.
Future-Focused Corporate Models for 2026 EcosystemsPublic-sector investment and reform remain central to sustaining this pattern. Policy procedures targeted 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 lower the area's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play an encouraging function in 2026.
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