All Categories
Featured
Table of Contents
The sector likewise faced more comprehensive macro headwinds, including a more careful policy backdrop in China and worldwide risk-off belief 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 valuation pressures and global rate characteristics weighed on efficiency.
The petrochemical ETF considerably outshined. Flows in Q1 2026 were modest and extremely concentrated, showing selective allotment rather than broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with only a small number of products drawing in new capital. This indicates that financiers were targeting specific direct exposures, while lowering or turning out of others.
Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have actually occurred in the secondary market, enabling financiers to adjust positions without significant main productions or redemptions. While current geopolitical occasions have resulted in more financial pressure on GCC countries, the region stays resilient and well capitalized to handle the circumstance.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic exposure concentrated 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 introduce in April pending a last approval from ADX.
Q1 2026 showed some development connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually impacted belief and costs throughout the quarter, it has actually driven more volume and interest in regional assets.
In spite of ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, maintaining positive growth momentum in current years. While disputes in the larger region and global economic uncertainty stay a structural constraint, GCC nations have so far limited their effect on domestic financial efficiency through strong fiscal positions, policy continuity, and continual investment.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF 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 favorable overall conditions.
Using the Development Prospective of Jeddah's New DistrictsThe IMF's World Economic Outlook (October 2025) jobs international growth relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, 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, enhancing the GCC's status as a relatively high-growth pocketprovided that regional risk conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden financial investment in services, infrastructure, 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 rising financial investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this pattern. Policy steps targeted at attracting foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a supportive 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 similarly sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) jobs international growth relieving 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 put 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 relatively high-growth pocketprovided that regional danger conditions stay included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to rise as governments broaden investment in services, facilities, and innovation. 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, enhancing 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 focused on drawing in foreign direct financial investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a helpful role in 2026.
Latest Posts
Driving Dubai Industrial Expansion through Operational Excellence
Leading the 2026 GCC Economic Landscape for Leaders
Comparing Future-Focused Models Against Legacy Frameworks
