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The sector likewise dealt with broader macro headwinds, including a more cautious policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs Had a hard time for the many part, especially those connected to carbon and high-growth technology, as assessment pressures and global rate dynamics weighed on efficiency.
Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allocation rather than broad market involvement. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of products bring in new capital.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually happened in the secondary market, allowing investors to change positions without significant main developments or redemptions. While recent geopolitical events have actually resulted in more monetary pressure on GCC nations, the region remains resilient and well capitalized to handle the circumstance.
In January, Boreas released its S&P Global High-end UCITS ETF, adding a niche thematic direct exposure focused on international luxury and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development associating with ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected belief and costs throughout the quarter, it has driven more volume and interest in local assets.
In spite of ongoing geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, maintaining favorable development momentum in the last few years. While conflicts in the larger region and international financial uncertainty remain a structural restraint, GCC nations have so far restricted their influence on domestic economic efficiency through strong financial positions, policy connection, and continual financial investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth relieving 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 growth 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.
Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments expand 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 facilities.
Public-sector financial investment and reform stay central to sustaining this pattern. Policy procedures focused on attracting foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a helpful function in 2026.
3.2 percent growth in 2025, speeding up 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, showing a shift towards more favorable total conditions.
The IMF's World Economic Outlook (October 2025) tasks international growth easing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position 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 fairly high-growth pocketprovided that regional danger conditions remain consisted of and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to increase as governments broaden 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, enhancing credit conditions, and increasing investment in technology and AI-related facilities.
A Strategic Guide to GCC Industrial Success in 2026Public-sector investment and reform remain main to sustaining this trend. Policy procedures aimed at attracting foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play an encouraging function in 2026.
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