All Categories
Featured
Table of Contents
The sector likewise faced more comprehensive macro headwinds, including a more mindful policy backdrop in China and worldwide risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs likewise had a hard time for the many part, particularly those connected to carbon and high-growth technology, as evaluation pressures and worldwide rate characteristics weighed on efficiency.
The petrochemical ETF considerably surpassed. Circulations in Q1 2026 were modest and extremely focused, showing selective allotment rather than broad market participation. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a little number of products bring in new capital. This suggests that financiers were targeting particular direct exposures, while decreasing or rotating out of others.
Trading activity remained stable, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have taken place in the secondary market, allowing financiers to adjust positions without substantial primary creations or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure focused on international luxury and customer brand names. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are expected to launch in April pending a final approval from ADX.
Q1 2026 showed 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 impacted sentiment and prices during the quarter, it has actually driven more volume and interest in regional properties.
In spite 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, maintaining favorable development momentum in current years. While conflicts in the wider region and global financial uncertainty remain a structural constraint, GCC nations have so far limited their effect on domestic financial performance through strong financial positions, policy continuity, and continual financial investment.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF 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 favorable total conditions.
The IMF's World Economic Outlook (October 2025) jobs global growth relieving to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would put the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that regional risk conditions stay included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to increase as federal governments expand investment in services, facilities, and technology. 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 innovation and AI-related infrastructure.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy steps focused on drawing in foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the region's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play a supportive function in 2026.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive total conditions.
The IMF's World Economic Outlook (October 2025) tasks global growth alleviating to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would put 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 relatively high-growth pocketprovided that regional danger conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to rise as governments expand investment in services, facilities, and technology. 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.
Preparing Your GCC Outsourcing Method for 2026 InterruptionsPublic-sector investment and reform remain central to sustaining this trend. Policy procedures focused on attracting foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play a supportive function in 2026.
Latest Posts
Essential GCC Business Research Trends for 2026
Industrial Excellence: a Strategic Pillar for Regional Growth
Charting GCC Corporate Strategy in 2026
