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The sector likewise faced wider macro headwinds, including a more cautious policy background in China and worldwide risk-off belief driven by geopolitical stress and higher energy costs. Thematic ETFs also struggled for the many part, especially those connected to carbon and high-growth innovation, as appraisal pressures and global rate dynamics weighed on efficiency.
The petrochemical ETF significantly outshined. Flows in Q1 2026 were modest and highly focused, reflecting selective allotment instead of broad market involvement. Regardless of weak performance, ETFs taped $27.1 million in net inflows, with just a little number of products bring in new capital. This shows that financiers were targeting particular exposures, while decreasing or turning out of others.
Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have actually happened in the secondary market, allowing financiers to change positions without considerable primary creations or redemptions. While recent geopolitical events have led to more monetary pressure on GCC nations, the area remains resilient and well capitalized to deal with the scenario.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a specific niche thematic direct exposure focused on worldwide high-end and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress connecting to ETFs in the GCC. We anticipate more global 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 regional possessions.
Regardless of ongoing geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, keeping positive growth momentum over the last few years. While disputes in the larger area and worldwide financial unpredictability stay a structural restraint, GCC countries have actually up until now restricted their effect on domestic economic efficiency through strong financial positions, policy continuity, and sustained investment.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF 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 total conditions.
How Shared Provider Foster Regional Service StrengthThe IMF's World Economic Outlook (October 2025) jobs worldwide development reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would place the area materially ahead of the world average and slightly 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 consisted of 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 increase as federal governments expand 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.
Public-sector investment and reform remain main to sustaining this trend. Policy measures focused on drawing in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a supportive 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 overall conditions.
The 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 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 slightly 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 consisted of 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 continued to rise 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, enhancing credit conditions, and increasing financial investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy procedures focused on attracting foreign direct financial investment, alleviating foreign ownership rules, expanding 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 development outlook, oil revenues are anticipated to play a helpful function in 2026.
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