All Categories
Featured
Table of Contents
The sector also dealt with wider macro headwinds, consisting of a more careful policy background in China and global risk-off belief driven by geopolitical tensions and higher energy rates. Thematic ETFs Struggled for the many part, particularly those connected to carbon and high-growth technology, as appraisal pressures and international rate characteristics weighed on performance.
Flows in Q1 2026 were modest and extremely concentrated, showing selective allocation rather than broad market involvement. Regardless of weak efficiency, ETFs recorded $27.1 million in net inflows, with only a small number of products attracting new capital.
Trading activity stayed stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. A lot of activity appears to have happened in the secondary market, enabling investors to change positions without significant main creations or redemptions. While recent geopolitical events have actually led to more financial pressure on GCC countries, the region stays resilient and well capitalized to handle the circumstance.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure concentrated on worldwide high-end 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 anticipated to release in April pending a last approval from ADX.
Q1 2026 showed some progress relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has impacted belief and costs during the quarter, it has driven more volume and interest in local assets.
Regardless of ongoing geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, maintaining positive development momentum over the last few years. While disputes in the broader area and international financial uncertainty remain a structural restriction, GCC nations have so far limited their effect on domestic economic efficiency through strong financial positions, policy continuity, and continual investment.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift towards more favorable overall conditions.
Utilizing GCC Research to Effectively Drive Operational GrowthThe IMF's World Economic Outlook (October 2025) jobs worldwide development alleviating to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would place the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that local threat conditions remain included and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to increase as governments broaden 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 investment in technology and AI-related facilities.
Public-sector investment and reform remain main to sustaining this pattern. Policy steps intended at bring in foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a helpful role in 2026.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) projects international growth easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth 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 relatively high-growth pocketprovided that local danger conditions remain included 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 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.
Traditional Vs Global Strategy Within the MENA RegionPublic-sector investment and reform remain main to sustaining this pattern. Policy procedures focused on attracting foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a supportive role in 2026.
Latest Posts
Crucial GCC Business Analysis Insights in 2026
Can the GCC Lead Industrial Growth through 2026?
Why Future-Focused Strategy Reshapes the GCC Economy
