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The sector likewise faced wider macro headwinds, consisting of a more careful policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and higher energy costs. Thematic ETFs Had a hard time for the many part, especially those connected to carbon and high-growth innovation, as appraisal pressures and worldwide rate dynamics weighed on performance.
Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allotment rather than broad market involvement. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a small number of items attracting new capital.
Trading activity remained stable, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have actually happened in the secondary market, enabling financiers to adjust positions without significant main creations or redemptions. While recent geopolitical occasions have actually resulted in more monetary pressure on GCC countries, the area stays durable and well capitalized to handle the circumstance.
In January, Boreas released its S&P Global High-end UCITS ETF, including a specific niche thematic direct exposure focused on international luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress associating with ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected sentiment and rates during the quarter, it has driven more volume and interest in local properties.
Despite ongoing geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, maintaining positive development momentum in the last few years. While conflicts in the larger region and global economic uncertainty remain a structural restraint, GCC countries have actually so far restricted their effect on domestic financial performance through strong fiscal positions, policy continuity, and sustained investment.
3.2 percent development in 2025, speeding up 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, showing a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) tasks international growth relieving 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 comparison, 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, strengthening the GCC's status as a fairly high-growth pocketprovided that regional threat conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to rise as governments expand investment in services, infrastructure, 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 technology and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this trend. Policy steps focused on attracting foreign direct investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are expected to play a helpful function in 2026.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects international growth relieving 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 comparison, 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 fairly high-growth pocketprovided that regional danger conditions remain contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to increase as governments broaden investment in services, facilities, and technology. According to Oxford Economics, non-energy activity throughout the GCC is predicted 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 infrastructure.
Business Case for Co-Sourcing in the 2026 GCCPublic-sector investment and reform stay central to sustaining this trend. Policy steps targeted at bring in foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play an encouraging function in 2026.
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