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The sector likewise dealt with more comprehensive macro headwinds, consisting of a more careful policy backdrop in China and global risk-off sentiment driven by geopolitical stress and higher energy prices. Thematic ETFs Had a hard time for the most part, particularly those linked to carbon and high-growth innovation, as evaluation pressures and global rate dynamics weighed on performance.
The petrochemical ETF substantially surpassed. Circulations in Q1 2026 were modest and highly focused, 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 products attracting brand-new capital. This suggests that investors were targeting specific direct exposures, while lowering or rotating out of others.
Trading activity stayed steady, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Many activity appears to have taken place in the secondary market, enabling investors to adjust positions without significant primary productions or redemptions. While recent geopolitical occasions have actually led to more financial pressure on GCC countries, the area remains resistant and well capitalized to handle the circumstance.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a niche thematic exposure focused on worldwide 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 during 2026. While the dispute has affected belief and costs during the quarter, it has actually driven more volume and interest in regional assets.
In spite of ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, preserving positive growth momentum in recent years. While disputes in the broader area and international financial unpredictability stay a structural constraint, GCC countries have actually so far restricted their effect on domestic financial 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 towards more favorable overall conditions.
Strategic Tips for Navigating the Regional LandscapeThe IMF's World Economic Outlook (October 2025) tasks worldwide growth reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would place the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that local risk conditions remain consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments expand investment in services, infrastructure, 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 investment in technology and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this pattern. Policy procedures intended at drawing in foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play a helpful role in 2026.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift toward more positive total 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 place the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional threat 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 total GDP, a share that has continued to increase as federal governments broaden investment in services, infrastructure, 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 innovation and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this pattern. Policy steps targeted at bring in foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play a supportive role in 2026.
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