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The sector likewise faced more comprehensive macro headwinds, including a more mindful policy backdrop in China and international risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs Struggled for the most part, especially those linked to carbon and high-growth innovation, as evaluation pressures and international rate dynamics weighed on efficiency.
The petrochemical ETF substantially surpassed. Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allotment instead of broad market participation. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of products attracting new capital. This shows that financiers were targeting specific direct exposures, while decreasing or turning out of others.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have taken place in the secondary market, enabling financiers to adjust positions without significant primary productions or redemptions. While recent geopolitical events have actually led to more monetary pressure on GCC countries, the region stays resistant and well capitalized to deal with the situation.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused on international high-end and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development connecting to ETFs in the GCC. We anticipate more worldwide 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 local assets.
Regardless of ongoing geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, preserving positive development momentum in current years. While conflicts in the wider region and global financial unpredictability remain a structural constraint, GCC countries have so far limited their impact on domestic financial performance through strong fiscal positions, policy continuity, and continual investment.
3.2 percent development 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 total conditions.
Corporate Strategy for GCC SuccessThe IMF's World Economic Outlook (October 2025) projects international development alleviating 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 contrast, a 4.44.5 percent GCC expansion would put the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional risk conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center show 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, infrastructure, 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 increasing investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy measures focused on bring in foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are anticipated to play an encouraging role in 2026.
3.2 percent development in 2025, accelerating 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, reflecting a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development alleviating 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 region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional danger conditions stay included and reform momentum holds.
Information 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 governments expand investment in services, infrastructure, and innovation. 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 increasing financial investment in technology and AI-related facilities.
Accelerating Dubai Industrial Growth through InnovationPublic-sector financial investment and reform stay central to sustaining this pattern. Policy measures targeted at attracting foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected to play a helpful function in 2026.
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