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The sector likewise dealt with wider macro headwinds, consisting of a more careful policy background in China and global risk-off belief driven by geopolitical tensions and higher energy prices. Thematic ETFs likewise struggled for the most part, particularly those connected to carbon and high-growth innovation, as appraisal pressures and worldwide rate dynamics weighed on performance.
The petrochemical ETF considerably outshined. Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allowance rather than broad market involvement. Regardless of weak performance, ETFs taped $27.1 million in net inflows, with only a little number of items bring in brand-new capital. This suggests that financiers were targeting specific direct exposures, while reducing or rotating out of others.
Trading activity remained 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 taken location in the secondary market, making it possible for investors to change positions without considerable main creations or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a niche thematic direct exposure focused on international high-end and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development associating with ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted belief and prices throughout the quarter, it has driven more volume and interest in local possessions.
Regardless of continuous geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, maintaining favorable development momentum recently. While disputes in the wider region and international financial unpredictability stay a structural constraint, GCC nations 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 growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive overall conditions.
How to Secure a Competitive Advantage in DubaiThe 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 establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that regional danger conditions stay consisted of 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 continued to rise 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, enhancing credit conditions, and increasing financial investment in innovation and AI-related facilities.
Public-sector investment and reform stay main to sustaining this trend. Policy steps aimed at attracting foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play an encouraging function in 2026.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to increase 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) projects global development alleviating 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 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, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional danger conditions remain contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently account for 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 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 focused on attracting foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play a helpful function in 2026.
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