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The sector also faced wider macro headwinds, including a more careful policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and greater energy costs. Thematic ETFs Had a hard time for the many part, especially those linked to carbon and high-growth innovation, as appraisal pressures and international rate characteristics weighed on efficiency.
The petrochemical ETF considerably outperformed. Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allowance instead of broad market participation. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a small number of items drawing in brand-new capital. This indicates that investors were targeting specific exposures, while minimizing or rotating out of others.
Trading activity stayed steady, with average 30-day volumes around 33,000 shares, concentrated 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 financiers to change positions without substantial main productions or redemptions.
In January, Boreas released its S&P Global High-end 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 progress relating to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected belief and costs during the quarter, it has driven more volume and interest in regional possessions.
In spite of continuous geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, maintaining favorable growth momentum in the last few years. While disputes in the larger area and global economic unpredictability remain a structural constraint, GCC countries have so far limited their effect on domestic economic efficiency through strong fiscal positions, policy connection, and continual financial investment.
3.2 percent growth in 2025, accelerating 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, reflecting a shift toward more favorable overall conditions.
Choosing the Many Rewarding Entry Point in Saudi ArabiaThe IMF's World Economic Outlook (October 2025) projects worldwide growth relieving 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 position 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 relatively high-growth pocketprovided that regional risk conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall 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 rising investment in innovation and AI-related facilities.
Public-sector investment and reform stay main to sustaining this pattern. Policy steps targeted at drawing in foreign direct financial investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play a supportive role 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 likewise sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development easing to 3.1 percent in 2026, with innovative 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 put 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 relatively high-growth pocketprovided that regional threat conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to rise as federal governments expand financial investment in services, facilities, and innovation. 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, enhancing credit conditions, and rising investment in innovation and AI-related facilities.
Public-sector investment and reform stay central to sustaining this pattern. Policy measures targeted at drawing in foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a helpful role in 2026.
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