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The sector also dealt with more comprehensive macro headwinds, including a more careful policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and higher energy costs. Thematic ETFs likewise had a hard time for the a lot of part, particularly those connected to carbon and high-growth innovation, as assessment pressures and global rate characteristics weighed on efficiency.
The petrochemical ETF significantly outshined. Flows in Q1 2026 were modest and highly focused, reflecting selective allocation instead of broad market involvement. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with only a small number of items bring in new capital. This suggests that financiers were targeting specific exposures, while reducing or rotating out of others.
Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. The majority of activity appears to have actually taken location in the secondary market, making it possible for financiers to change positions without significant main creations or redemptions. While recent geopolitical occasions have resulted in more financial pressure on GCC nations, the region stays durable and well capitalized to deal with the circumstance.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a niche thematic direct exposure focused on global luxury and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually affected sentiment and prices during the quarter, it has actually driven more volume and interest in regional possessions.
In spite of ongoing geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, keeping positive development momentum over the last few years. While conflicts in the wider area and worldwide financial unpredictability remain a structural restraint, GCC countries have actually so far restricted their effect on domestic economic efficiency through strong fiscal positions, policy connection, and continual financial investment.
The World Bank, on the other hand, projects 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF 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 towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) tasks international growth 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 comparison, a 4.44.5 percent GCC growth would position the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that regional threat conditions stay included 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 actually continued to rise as governments broaden investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout the GCC is forecasted 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 facilities.
Public-sector investment and reform stay main to sustaining this pattern. Policy measures focused on drawing in foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play an encouraging function in 2026.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development 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 contrast, a 4.44.5 percent GCC growth would place 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 reasonably high-growth pocketprovided that local danger conditions remain consisted of 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 actually continued to rise as federal governments broaden investment in services, infrastructure, 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, improving credit conditions, and increasing financial investment in technology and AI-related facilities.
Maximising Operational Efficiency through Strategic Business ResearchPublic-sector investment and reform remain main to sustaining this trend. Policy procedures targeted at drawing in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play a supportive function in 2026.
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