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The sector likewise dealt with more comprehensive macro headwinds, including a more mindful policy background in China and global risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs Had a hard time for the a lot of part, especially those connected to carbon and high-growth technology, as valuation pressures and international rate characteristics weighed on performance.
The petrochemical ETF substantially outperformed. Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allowance rather than broad market involvement. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with just a small number of products drawing in brand-new capital. This indicates that financiers were targeting specific direct exposures, while reducing or turning out of others.
Trading activity stayed consistent, with typical 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, allowing investors to adjust positions without considerable main productions or redemptions. While recent geopolitical events have resulted in more monetary pressure on GCC nations, the area remains resilient and well capitalized to deal with the situation.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a specific niche thematic direct exposure focused on international high-end and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress associating with ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the dispute has affected belief and prices during the quarter, it has actually driven more volume and interest in regional possessions.
Regardless of ongoing geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, preserving positive growth momentum in recent years. While disputes in the larger area and international economic unpredictability stay a structural restraint, GCC nations have actually up until now limited their effect on domestic financial performance through strong financial positions, policy connection, and sustained investment.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating 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, showing a shift towards more positive general conditions.
Will Market Research Define Middle East Corporate Success?The IMF's World Economic Outlook (October 2025) jobs international growth reducing 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 comparison, 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, strengthening the GCC's status as a relatively high-growth pocketprovided that local danger conditions stay included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments broaden investment in services, infrastructure, and technology. 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 rising investment in technology and AI-related infrastructure.
Public-sector investment and reform stay main to sustaining this trend. Policy procedures focused on drawing in foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated to play an encouraging role in 2026.
3.2 percent growth in 2025, accelerating 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 positive total conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development 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 contrast, a 4.44.5 percent GCC expansion would put the area 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 regional danger conditions remain contained and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments broaden investment in services, infrastructure, and technology. 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 rising financial investment in technology and AI-related facilities.
Public-sector investment and reform remain main to sustaining this pattern. Policy steps targeted at drawing in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play a supportive function in 2026.
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