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The sector also faced wider macro headwinds, consisting of a more careful policy background in China and global risk-off sentiment driven by geopolitical tensions and greater energy costs. Thematic ETFs Had a hard time for the many part, particularly those connected to carbon and high-growth technology, as valuation pressures and international rate characteristics weighed on performance.
The petrochemical ETF substantially exceeded. Circulations in Q1 2026 were modest and highly focused, reflecting selective allocation instead of broad market participation. Regardless of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a little number of items bring in brand-new capital. This indicates that investors were targeting particular exposures, while lowering or turning out of others.
Trading activity remained 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 occurred in the secondary market, making it possible for financiers to adjust positions without considerable main creations or redemptions. While current geopolitical occasions have resulted in more monetary pressure on GCC countries, the region remains resistant and well capitalized to handle the scenario.
In January, Boreas launched its S&P Global Luxury UCITS ETF, including a niche thematic exposure focused on international luxury and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development connecting to 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 regional possessions.
In spite of ongoing geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, keeping positive development momentum in the last few years. While conflicts in the wider region and worldwide economic unpredictability remain a structural constraint, GCC countries have up until now limited their impact on domestic financial efficiency through strong fiscal positions, policy connection, and continual investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable total conditions.
Unlocking Operational Excellence in the Industrial SectorThe IMF's World Economic Outlook (October 2025) jobs global development reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would place the region 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 relatively high-growth pocketprovided that local threat conditions remain contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently represent 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 increasing investment in technology and AI-related facilities.
Public-sector investment and reform remain main to sustaining this trend. Policy measures targeted at drawing in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil incomes 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 development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development alleviating to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, 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 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 account for more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments expand investment in services, facilities, 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, improving credit conditions, and rising investment in innovation and AI-related infrastructure.
Corporate Agility for the Changing GCC MarketPublic-sector investment and reform remain main to sustaining this pattern. Policy procedures targeted at bring in foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play a helpful role in 2026.
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