All Categories
Featured
Table of Contents
The sector likewise dealt with broader macro headwinds, including a more cautious policy background in China and international risk-off sentiment driven by geopolitical stress and higher energy prices. Thematic ETFs likewise struggled for the many part, especially those connected to carbon and high-growth technology, as valuation pressures and global rate characteristics weighed on efficiency.
The petrochemical ETF considerably surpassed. Flows in Q1 2026 were modest and highly focused, showing selective allocation rather than broad market participation. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with only a little number of products bring in brand-new capital. This suggests that financiers were targeting specific exposures, while lowering or turning out of others.
Trading activity stayed steady, 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 happened in the secondary market, enabling financiers to change positions without significant main creations or redemptions. While current geopolitical occasions have led to more financial pressure on GCC countries, the region remains durable and well capitalized to deal with the scenario.
In January, Boreas launched its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure concentrated on worldwide luxury and consumer 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 anticipated to introduce in April pending a last approval from ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the dispute has affected sentiment and prices during the quarter, it has driven more volume and interest in regional properties.
Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, keeping positive development momentum in recent years. While disputes in the broader area and global economic unpredictability stay a structural constraint, GCC countries have up until now restricted their influence on domestic economic efficiency through strong fiscal positions, policy connection, and continual financial investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. 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 toward more positive total conditions.
Attracting International Talent to the UAE's Growing Digital EconomyThe IMF's World Economic Outlook (October 2025) tasks worldwide growth easing 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 contrast, 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 remain contained 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 actually continued to increase as federal governments expand investment in services, infrastructure, 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 increasing investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy procedures targeted at drawing in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play a helpful function in 2026.
The World Bank, on the other hand, projects 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development reducing 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 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 local danger conditions stay consisted of and reform momentum holds.
Data 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 expand investment in services, facilities, and innovation. 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 financial investment in innovation and AI-related infrastructure.
The Evolution of Regional GBS Models in the GCCPublic-sector investment and reform remain main to sustaining this trend. Policy measures targeted at bring in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play an encouraging function in 2026.
Latest Posts
Operational Excellence: a Strategic Pillar for Regional Growth
Emerging Future Shifts Defining the 2026 GCC Market
Predicting the 2026 GCC Business Landscape
