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The sector also faced broader macro headwinds, including a more cautious policy backdrop in China and global risk-off sentiment driven by geopolitical stress and greater energy prices. Thematic ETFs Struggled for the a lot of part, particularly those connected to carbon and high-growth innovation, as valuation pressures and global rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and highly focused, showing selective allotment rather than broad market involvement. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of products attracting new capital.
Trading activity remained steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have actually happened in the secondary market, making it possible for financiers to change positions without significant main creations or redemptions. While current geopolitical occasions have actually led to more financial pressure on GCC nations, the area stays resilient and well capitalized to handle the situation.
In January, Boreas released its S&P Global Luxury UCITS ETF, adding a niche thematic exposure focused on worldwide high-end and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development associating with ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted belief and prices during the quarter, it has actually driven more volume and interest in regional properties.
Regardless of continuous geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, keeping favorable development momentum over the last few years. While conflicts in the broader area and worldwide economic uncertainty stay a structural restraint, GCC countries have so far limited their influence on domestic financial performance through strong fiscal positions, policy continuity, and continual financial investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks global growth alleviating to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position the area 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 relatively high-growth pocketprovided that local threat conditions remain consisted of and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently represent 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 financial investment in technology and AI-related facilities.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy procedures aimed at drawing in foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play a helpful function in 2026.
3.2 percent development in 2025, speeding up 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, showing a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC growth would put the area 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 local risk conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments expand financial investment in services, facilities, 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, enhancing credit conditions, and increasing financial investment in technology and AI-related infrastructure.
Will Dubai Lead Industrial Growth through 2026?Public-sector investment and reform stay main to sustaining this trend. Policy procedures focused on bring in foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play an encouraging role in 2026.
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