All Categories
Featured
Table of Contents
The sector also faced wider macro headwinds, including a more careful policy backdrop in China and international risk-off sentiment driven by geopolitical stress and higher energy rates. Thematic ETFs Struggled for the many part, especially those connected to carbon and high-growth technology, as valuation pressures and worldwide rate characteristics weighed on efficiency.
The petrochemical ETF considerably exceeded. Flows in Q1 2026 were modest and extremely concentrated, showing selective allotment rather than broad market involvement. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of items bring in brand-new capital. This shows that investors were targeting specific direct exposures, while decreasing or rotating out of others.
Trading activity remained constant, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. A lot of activity appears to have actually taken place in the secondary market, enabling investors to change positions without significant main productions or redemptions. While recent geopolitical occasions have resulted in more monetary pressure on GCC countries, the region stays resilient and well capitalized to deal with the scenario.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a niche thematic direct exposure focused on worldwide luxury and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected belief and rates during the quarter, it has actually driven more volume and interest in regional possessions.
In spite of continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, keeping favorable growth momentum recently. While disputes in the larger region and international economic uncertainty remain a structural restraint, GCC countries have up until now limited their influence on domestic economic performance through strong financial positions, policy connection, and continual investment.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, accelerating 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.
Key GCC Market Research Insights in 2026The IMF's World Economic Outlook (October 2025) projects global growth alleviating 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 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, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional danger conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden financial investment in services, facilities, and innovation. 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, enhancing credit conditions, and rising financial investment in technology and AI-related infrastructure.
Public-sector investment and reform stay main to sustaining this pattern. Policy procedures targeted at attracting foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play a supportive function in 2026.
The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable total conditions.
The IMF's World Economic Outlook (October 2025) jobs international development 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 growth would position the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing 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 already represent more than 73 percent of total GDP, a share that has continued to increase as governments expand investment in services, infrastructure, and technology. 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, improving credit conditions, and increasing investment in technology and AI-related facilities.
Strategic Tips for Mastering the GCC LandscapePublic-sector investment and reform remain main to sustaining this trend. Policy steps targeted at drawing in foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play a supportive role in 2026.
Latest Posts
Emerging Future Shifts Shaping the 2026 GCC Market
Driving Dubai Industrial Growth through Strategy
How to Utilize Market Intelligence for Success
