All Categories
Featured
Table of Contents
The sector likewise dealt with wider macro headwinds, including a more careful policy backdrop in China and worldwide risk-off belief driven by geopolitical tensions and greater energy rates. Thematic ETFs Had a hard time for the many part, especially those linked to carbon and high-growth innovation, as evaluation pressures and global rate dynamics weighed on performance.
The petrochemical ETF considerably surpassed. Flows in Q1 2026 were modest and extremely focused, showing selective allocation instead of broad market participation. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with just a little number of items attracting brand-new capital. This shows that financiers were targeting particular direct exposures, while lowering or turning out of others.
Trading activity remained steady, with average 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, allowing investors to adjust positions without significant main productions or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure focused on international luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually affected sentiment and prices throughout the quarter, it has driven more volume and interest in local assets.
In spite of ongoing geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, maintaining favorable development momentum in the last few years. While conflicts in the wider area and global financial unpredictability remain a structural restraint, GCC countries have up until now restricted their effect on domestic financial performance through strong fiscal positions, policy continuity, and continual financial investment.
3.2 percent growth in 2025, accelerating 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 total conditions.
Strategic Strategy for Regional ExcellenceThe IMF's World Economic Outlook (October 2025) jobs international development relieving 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 comparison, 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, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to increase as governments expand investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across the GCC is projected 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 pattern. Policy measures targeted at attracting foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play a supportive role in 2026.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth alleviating 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 comparison, a 4.44.5 percent GCC expansion would position the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that local threat conditions stay included and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to increase as governments expand 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, enhancing credit conditions, and increasing financial investment in innovation and AI-related infrastructure.
Advanced Planning for Regional LeadershipPublic-sector financial investment and reform stay main to sustaining this pattern. Policy measures focused on drawing in foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a helpful function in 2026.
Latest Posts
Comparing Corporate Strategy Models across the GCC
The Benefits of Industrial Growth for Dubai
Crucial Middle East Market Research Insights in 2026