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The sector likewise dealt with more comprehensive macro headwinds, consisting of a more mindful policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs also struggled for the many part, especially those linked to carbon and high-growth technology, as appraisal pressures and worldwide rate dynamics weighed on efficiency.
The petrochemical ETF considerably exceeded. Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allotment rather than broad market involvement. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of products bring in new capital. This suggests that financiers were targeting particular exposures, while decreasing or turning out of others.
Trading activity stayed stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have actually occurred in the secondary market, allowing financiers to change positions without significant main developments or redemptions. While recent geopolitical events have led to more monetary pressure on GCC countries, the region stays resilient and well capitalized to handle the scenario.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure focused on global luxury 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 expected to launch in April pending a last approval from ADX.
Q1 2026 revealed some development associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected belief and costs during the quarter, it has actually driven more volume and interest in regional possessions.
In spite of continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, preserving favorable development momentum in the last few years. While disputes in the wider region and international economic unpredictability remain a structural restriction, GCC nations have actually so far restricted their effect on domestic financial efficiency through strong fiscal positions, policy connection, and sustained investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable total conditions.
What UAE Personnel In Fact Want in 2026The IMF's World Economic Outlook (October 2025) projects 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 put the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that regional danger conditions stay consisted of 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 governments broaden financial investment in services, infrastructure, and innovation. 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, enhancing credit conditions, and rising investment in innovation and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this trend. Policy measures aimed at drawing in foreign direct investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are expected to play a supportive role in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted 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) tasks global development relieving to 3.1 percent in 2026, with advanced 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 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 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 total GDP, a share that has continued to rise as governments broaden investment in services, facilities, and innovation. 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 innovation and AI-related infrastructure.
How to Navigate the Cultural Nuances of Saudi EntryPublic-sector financial investment and reform remain central to sustaining this pattern. Policy procedures focused on bring in foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play an encouraging function in 2026.
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