All Categories
Featured
Table of Contents
The sector likewise faced broader macro headwinds, including a more mindful policy background in China and international risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs likewise struggled for the a lot of part, especially those connected to carbon and high-growth technology, as evaluation pressures and international rate characteristics weighed on efficiency.
Circulations in Q1 2026 were modest and extremely focused, showing selective allocation rather than broad market involvement. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a small number of products drawing in brand-new capital.
Trading activity stayed constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have taken place in the secondary market, allowing financiers to change positions without significant primary developments or redemptions. While recent geopolitical occasions have actually led to more financial pressure on GCC countries, the region remains durable and well capitalized to deal with the scenario.
In January, Boreas released its S&P Global High-end UCITS ETF, including a niche thematic exposure focused on worldwide luxury and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected sentiment and prices during the quarter, it has driven more volume and interest in local assets.
Regardless of ongoing geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, keeping positive growth momentum recently. While conflicts in the wider area and worldwide financial unpredictability stay a structural restriction, GCC nations have actually up until now limited their effect on domestic financial performance through strong financial positions, policy connection, and continual financial investment.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF 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 overall conditions.
How Future-Focused Strategy Reshapes the Regional EconomyThe IMF's World Economic Outlook (October 2025) projects global growth relieving to 3.1 percent in 2026, with advanced 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 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 regional threat conditions stay consisted of 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 innovation. 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, improving credit conditions, and rising financial investment in innovation and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this trend. Policy measures aimed at drawing in foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play a supportive role in 2026.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) jobs global growth easing 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 contrast, a 4.44.5 percent GCC growth would put the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, reinforcing 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 show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to increase as governments broaden investment in services, facilities, and technology. 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 innovation and AI-related infrastructure.
Public-sector investment and reform stay main to sustaining this pattern. Policy procedures aimed at attracting foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a supportive function in 2026.
Latest Posts
Bridging Strategy With Business Excellence Across the Middle East
Corporate Agility in the Changing GCC Landscape
Can Market Analytics Drive Middle East Industrial Success?
