All Categories
Featured
Table of Contents
The sector also faced broader macro headwinds, consisting of a more careful policy backdrop in China and global 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 innovation, as valuation pressures and worldwide rate characteristics weighed on efficiency.
The petrochemical ETF substantially exceeded. Circulations in Q1 2026 were modest and extremely focused, reflecting selective allowance rather than broad market involvement. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with just a small number of items drawing in brand-new capital. This shows that investors were targeting particular exposures, while minimizing or rotating out of others.
Trading activity remained stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have actually taken place in the secondary market, allowing financiers to adjust positions without significant main developments or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure focused on international high-end and customer brands. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are anticipated to introduce in April pending a last approval from ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually affected sentiment and rates during the quarter, it has actually driven more volume and interest in local assets.
Despite continuous geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, preserving favorable growth momentum over the last few years. While disputes in the broader region and global economic unpredictability stay a structural restraint, GCC countries have up until now limited their effect on domestic financial efficiency through strong financial positions, policy connection, and continual investment.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) tasks international development 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 position 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 fairly high-growth pocketprovided that local 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 financial investment in services, infrastructure, 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, enhancing credit conditions, and rising financial investment in innovation and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this trend. Policy measures intended at attracting foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play a supportive function in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) projects international growth alleviating 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 position the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that local risk conditions remain included 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 governments broaden financial investment in services, infrastructure, 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, enhancing credit conditions, and increasing financial investment in technology and AI-related infrastructure.
Can Dubai Sustain Industrial Growth through 2026?Public-sector financial investment and reform remain central to sustaining this trend. Policy steps focused on drawing in foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play an encouraging role in 2026.
Latest Posts

Leveraging Market Research to Drive Operational Growth

How Is Business Excellence Essential for 2026 Growth?
Emerging Strategic Trends Defining the 2026 Regional Market