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The sector also dealt with more comprehensive macro headwinds, consisting of a more mindful policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and greater energy rates. Thematic ETFs also struggled for the most part, particularly those linked to carbon and high-growth technology, as evaluation pressures and global rate characteristics weighed on efficiency.
The petrochemical ETF substantially exceeded. Circulations in Q1 2026 were modest and highly focused, showing selective allocation rather than broad market involvement. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a little number of products drawing in brand-new capital. This shows that financiers were targeting specific exposures, while decreasing or turning out of others.
Trading activity stayed consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Many activity appears to have happened in the secondary market, allowing investors to change positions without considerable main creations or redemptions. While current geopolitical occasions have led to more monetary pressure on GCC countries, the area stays resilient and well capitalized to handle the situation.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a niche thematic exposure focused on worldwide luxury and customer 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 global and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted belief and rates throughout the quarter, it has driven more volume and interest in local properties.
Despite ongoing geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, maintaining favorable development momentum in the last few years. While disputes in the larger area and worldwide economic uncertainty stay a structural restriction, GCC nations have actually so far restricted their effect on domestic economic efficiency through strong financial positions, policy connection, and sustained financial investment.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would put 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 reasonably high-growth pocketprovided that local threat conditions stay included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to increase as governments broaden financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is projected 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 facilities.
Public-sector financial investment and reform remain main to sustaining this trend. Policy procedures targeted at drawing in foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play an encouraging function in 2026.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth reducing 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 contrast, a 4.44.5 percent GCC expansion would place the region 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 reasonably high-growth pocketprovided that regional risk conditions stay contained and reform momentum holds.

Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden investment in services, infrastructure, and technology. 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, improving credit conditions, and rising investment in technology and AI-related infrastructure.
Methods for Scaling Regional Strategy in 2026Public-sector investment and reform remain main to sustaining this trend. Policy measures focused on attracting foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play a helpful role in 2026.
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