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The sector likewise dealt with wider macro headwinds, consisting of a more cautious policy background in China and worldwide risk-off belief driven by geopolitical tensions and greater energy rates. Thematic ETFs Had a hard time for the most part, especially those linked to carbon and high-growth innovation, as evaluation pressures and global rate dynamics weighed on efficiency.
The petrochemical ETF substantially exceeded. Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allocation rather than broad market involvement. Despite weak performance, ETFs taped $27.1 million in net inflows, with just a small number of items bring in new capital. This shows that investors were targeting specific direct exposures, while minimizing or rotating out of others.
Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have taken place in the secondary market, making it possible for financiers to change positions without substantial main productions or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure focused on global luxury and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and costs throughout the quarter, it has actually driven more volume and interest in regional possessions.
In spite of ongoing geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, keeping favorable growth momentum in the last few years. While conflicts in the larger area and international economic uncertainty stay a structural constraint, GCC nations have actually up until now limited their influence on domestic financial efficiency through strong fiscal positions, policy continuity, and sustained investment.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) jobs 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 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, strengthening the GCC's status as a relatively high-growth pocketprovided that regional threat conditions remain contained and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to rise as federal governments expand financial investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is projected 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.
Public-sector investment and reform stay central to sustaining this trend. Policy steps focused on bring in foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are expected to play a helpful function in 2026.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects international development reducing 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 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, enhancing the GCC's status as a relatively high-growth pocketprovided that local danger conditions stay included 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 actually continued to rise as governments broaden investment in services, facilities, and technology. 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 financial investment in technology and AI-related facilities.
Ways to Utilize Market Intelligence for 2026 SuccessPublic-sector investment and reform stay main to sustaining this pattern. Policy steps targeted at drawing in foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play a supportive function in 2026.
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