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The sector likewise faced more comprehensive macro headwinds, including a more mindful policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and higher energy prices. Thematic ETFs Struggled for the a lot of part, especially those linked to carbon and high-growth technology, as evaluation pressures and worldwide rate characteristics weighed on efficiency.
The petrochemical ETF significantly outshined. Circulations in Q1 2026 were modest and highly focused, reflecting selective allocation rather than broad market participation. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of products attracting new capital. This indicates that financiers were targeting specific direct exposures, while reducing or turning 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. The majority of activity appears to have occurred in the secondary market, enabling financiers to change positions without considerable main developments or redemptions. While recent geopolitical occasions have actually led to more monetary pressure on GCC countries, the region remains durable and well capitalized to handle the scenario.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure focused on global high-end and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and prices during the quarter, it has actually driven more volume and interest in local assets.
Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, maintaining favorable growth momentum in the last few years. While disputes in the wider region and worldwide financial uncertainty stay a structural restraint, GCC countries have actually up until now limited their influence on domestic economic efficiency through strong fiscal positions, policy connection, and sustained financial investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive total conditions.
Comparing Modern Strategies Versus Legacy BusinessThe IMF's World Economic Outlook (October 2025) projects global development reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC growth would place the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional risk conditions stay included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to increase as governments expand 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 increasing financial investment in technology and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this trend. Policy procedures targeted at bring in foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play an encouraging role in 2026.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) jobs international development reducing to 3.1 percent in 2026, with innovative 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 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 fairly high-growth pocketprovided that regional threat conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to increase as federal 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 facilities.
Public-sector investment and reform stay central to sustaining this trend. Policy procedures targeted at attracting foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play an encouraging role in 2026.
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