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The sector also dealt with broader macro headwinds, including a more cautious policy background in China and global risk-off sentiment driven by geopolitical stress and greater energy rates. Thematic ETFs also had a hard time for the a lot of part, particularly those linked to carbon and high-growth innovation, as appraisal pressures and international rate characteristics weighed on efficiency.
The petrochemical ETF significantly exceeded. Circulations in Q1 2026 were modest and highly concentrated, showing selective allotment instead of broad market involvement. Regardless of weak efficiency, ETFs taped $27.1 million in net inflows, with only a little number of products bring in new capital. This indicates that investors were targeting particular exposures, while reducing or turning out of others.
Trading activity remained stable, 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 occurred in the secondary market, making it possible for investors to adjust positions without considerable primary creations or redemptions. While recent geopolitical occasions have actually resulted in more financial pressure on GCC nations, the area stays resilient and well capitalized to handle the situation.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure focused on global high-end and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has impacted belief and prices throughout the quarter, it has actually driven more volume and interest in regional properties.
Despite continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, preserving favorable development momentum recently. While conflicts in the wider region and international economic unpredictability stay a structural constraint, GCC countries have up until now restricted their influence on domestic financial performance through strong fiscal positions, policy connection, and continual financial investment.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable total conditions.
Browsing the Small Print of Doha's Industrial ReformsThe IMF's World Economic Outlook (October 2025) tasks global growth relieving 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, reinforcing the GCC's status as a reasonably high-growth pocketprovided that local danger conditions remain included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to increase as governments broaden 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, enhancing credit conditions, and increasing investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this pattern. Policy measures targeted at bring in foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected to play an encouraging function in 2026.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) jobs global development easing 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 contrast, a 4.44.5 percent GCC expansion would position the area 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 local danger conditions stay consisted of 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 continued to increase as federal governments expand investment in services, infrastructure, and innovation. 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 rising financial investment in innovation and AI-related infrastructure.
Why Productivity Is the Key Focus for UAE TalentPublic-sector financial investment and reform remain central to sustaining this trend. Policy measures targeted at bring in foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play a supportive role in 2026.
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