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The sector also faced more comprehensive macro headwinds, including a more cautious policy backdrop in China and worldwide risk-off sentiment driven by geopolitical stress and greater energy prices. Thematic ETFs likewise struggled for the many part, particularly those linked to carbon and high-growth innovation, as assessment pressures and worldwide rate characteristics weighed on efficiency.
The petrochemical ETF significantly exceeded. Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allowance instead of broad market participation. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with just a small number of items attracting new capital. This indicates that investors were targeting specific direct exposures, while reducing or turning out of others.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. The majority of activity appears to have actually taken location in the secondary market, making it possible for financiers to adjust positions without substantial main productions or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure focused on worldwide 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 impacted sentiment and rates during the quarter, it has actually driven more volume and interest in regional possessions.
Regardless of continuous geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, maintaining favorable development momentum recently. While disputes in the broader region and international financial unpredictability remain a structural restraint, GCC countries have actually up until now limited their effect on domestic economic performance through strong fiscal positions, policy continuity, and continual investment.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating 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.
The Growing Influence of Shared Solutions on Gulf ProductivityThe IMF's World Economic Outlook (October 2025) tasks global development reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth 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 risk conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to increase as federal governments broaden financial investment in services, facilities, 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, improving credit conditions, and increasing financial 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 investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play a helpful role in 2026.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) jobs international development alleviating 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 comparison, a 4.44.5 percent GCC expansion would place 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 relatively high-growth pocketprovided that regional danger conditions remain included 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 continued to increase as federal governments broaden 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 increasing investment in innovation and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this trend. Policy procedures targeted at attracting foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the region's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a helpful role in 2026.
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