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The sector likewise dealt with broader macro headwinds, including a more cautious policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy rates. Thematic ETFs Had a hard time for the many part, especially those connected to carbon and high-growth technology, as assessment pressures and international rate dynamics weighed on performance.
The petrochemical ETF substantially outshined. Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allocation rather than broad market involvement. Regardless of weak efficiency, ETFs recorded $27.1 million in net inflows, with just a little number of products bring in new capital. This suggests that investors were targeting particular direct exposures, while reducing or rotating out of others.
Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have actually taken location in the secondary market, allowing financiers to change positions without considerable main productions or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a niche thematic direct exposure focused on worldwide luxury and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected sentiment and rates throughout the quarter, it has driven more volume and interest in local properties.
Regardless of ongoing geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, keeping positive growth momentum in current years. While conflicts in the wider region and worldwide economic uncertainty stay a structural constraint, GCC countries have actually so far limited their impact on domestic financial efficiency through strong fiscal positions, policy continuity, and continual investment.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift towards more positive overall conditions.
Handling Cross-Border Compliance Between Muscat and DohaThe IMF's World Economic Outlook (October 2025) projects international development relieving 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 contrast, a 4.44.5 percent GCC growth 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 risk conditions remain 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 broaden financial 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 rising financial investment in technology and AI-related infrastructure.
Public-sector financial investment and reform remain main to sustaining this trend. Policy procedures targeted at drawing in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a supportive role in 2026.
The World Bank, on the other hand, projects 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth predicted to rise 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) projects worldwide 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 position the area 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 danger conditions stay included 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 actually continued to rise as federal governments broaden 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, enhancing credit conditions, and increasing investment in innovation and AI-related infrastructure.
Managing Legal Uncertainty in Emerging Middle East MarketsPublic-sector financial investment and reform stay central to sustaining this pattern. Policy steps focused on attracting foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play an encouraging role in 2026.
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