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The sector also faced wider macro headwinds, consisting of a more mindful policy background in China and worldwide risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs Had a hard time for the a lot of part, especially those linked to carbon and high-growth innovation, as assessment pressures and international rate characteristics weighed on efficiency.
The petrochemical ETF substantially exceeded. Circulations in Q1 2026 were modest and extremely focused, showing selective allowance instead of broad market participation. Regardless of weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of items attracting new capital. This indicates that investors were targeting specific direct exposures, while reducing or rotating out of others.
Trading activity remained steady, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger 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 significant main productions or redemptions. While recent geopolitical events have resulted in more monetary pressure on GCC nations, the region remains resilient and well capitalized to deal with the scenario.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure concentrated on international luxury and customer brands. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are expected to launch in April pending a last approval from ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected sentiment and prices during the quarter, it has actually driven more volume and interest in local possessions.
In spite of continuous geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, keeping favorable development momentum over the last few years. While disputes in the wider region and international financial uncertainty stay a structural constraint, GCC nations have actually up until now limited their effect on domestic economic efficiency through strong fiscal positions, policy continuity, 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 rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable overall conditions.
Why Does Business Excellence Vital for 2026 Growth?The IMF's World Economic Outlook (October 2025) projects global development easing 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 growth would place 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 included and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to rise as 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, enhancing credit conditions, and increasing financial investment in technology and AI-related facilities.
Public-sector investment and reform remain central to sustaining this trend. Policy steps intended at drawing in foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are expected to play a supportive role in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive overall conditions.
The IMF's World Economic Outlook (October 2025) tasks global development easing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would position the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that local risk conditions remain included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to increase as governments expand financial investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity across the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising financial investment in technology and AI-related infrastructure.
Why Does Business Excellence Vital for 2026 Growth?Public-sector investment and reform stay central to sustaining this trend. Policy steps targeted at drawing in foreign direct investment, reducing foreign ownership rules, broadening 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 control the growth outlook, oil earnings are anticipated to play a helpful role in 2026.
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