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The sector also faced more comprehensive macro headwinds, consisting of a more cautious policy background in China and global risk-off belief driven by geopolitical tensions and greater energy costs. Thematic ETFs Struggled for the many part, particularly those connected to carbon and high-growth innovation, as assessment pressures and international rate characteristics weighed on performance.
The petrochemical ETF significantly exceeded. Circulations in Q1 2026 were modest and highly concentrated, showing selective allowance rather than broad market participation. Despite weak performance, ETFs taped $27.1 million in net inflows, with just a small number of items drawing in new capital. This suggests that financiers were targeting particular direct exposures, while decreasing or turning out of others.
Trading activity stayed steady, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have happened in the secondary market, making it possible for financiers to adjust positions without substantial main creations or redemptions. While recent geopolitical occasions have led to more financial pressure on GCC countries, the region remains resilient and well capitalized to deal with the circumstance.
In January, Boreas released its S&P Global Luxury UCITS ETF, adding a specific niche thematic exposure focused on worldwide high-end and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has affected sentiment and prices during the quarter, it has driven more volume and interest in regional properties.
In spite of ongoing geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, preserving favorable development momentum in current years. While conflicts in the broader region and international financial unpredictability remain a structural restraint, GCC nations have actually so far restricted their influence on domestic financial performance through strong fiscal positions, policy connection, and sustained investment.
The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth alleviating to 3.1 percent in 2026, with innovative 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 relatively high-growth pocketprovided that regional threat conditions remain contained 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 rise as federal governments broaden financial investment in services, facilities, and technology. 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 facilities.
Public-sector investment and reform stay central to sustaining this pattern. Policy steps intended at drawing in foreign direct financial investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated to play a supportive role in 2026.
The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift towards more positive total conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth easing 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 comparison, a 4.44.5 percent GCC expansion would put 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 reasonably high-growth pocketprovided that local danger conditions remain consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to increase as governments broaden financial 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, improving credit conditions, and rising financial investment in innovation and AI-related infrastructure.
Ways to Utilize GCC Research for SuccessPublic-sector financial investment and reform stay central to sustaining this trend. Policy measures targeted at attracting foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play a helpful function in 2026.
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