All Categories
Featured
Table of Contents
The sector likewise dealt with more comprehensive macro headwinds, consisting of a more mindful policy backdrop in China and global risk-off belief driven by geopolitical tensions and greater energy rates. Thematic ETFs likewise struggled for the many part, particularly those linked to carbon and high-growth technology, as valuation pressures and international rate dynamics weighed on efficiency.
The petrochemical ETF substantially outperformed. Circulations in Q1 2026 were modest and highly focused, reflecting selective allotment instead of broad market participation. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a small number of items bring in brand-new capital. This indicates that financiers were targeting specific 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 taken place in the secondary market, enabling investors to change positions without substantial main productions or redemptions.
In January, Boreas released its S&P Global High-end UCITS ETF, adding a niche thematic direct exposure focused on international high-end and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has affected belief and prices during the quarter, it has actually driven more volume and interest in regional assets.
In spite of continuous geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, preserving favorable growth momentum in current years. While conflicts in the larger region and international economic uncertainty remain a structural restriction, GCC countries have up until now restricted their effect on domestic financial performance through strong fiscal positions, policy continuity, and continual financial investment.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive overall conditions.
Corporate Agility in the Evolving Middle East MarketThe IMF's World Economic Outlook (October 2025) projects worldwide development reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC expansion 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 fairly high-growth pocketprovided that local risk conditions stay consisted of and reform momentum holds.
Data 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 expand financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing financial investment in technology and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this pattern. Policy measures targeted at bring in foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play a helpful role in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide 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 growth would position the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that regional danger conditions remain contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to rise as governments broaden 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 investment in technology and AI-related infrastructure.
Methods for Optimising Regional Operations in 2026Public-sector investment and reform remain main to sustaining this trend. Policy measures focused on attracting foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play a supportive function in 2026.
Latest Posts
Connecting Policy and Business Excellence in the Middle East
Boosting Regional Industrial Expansion via Strategic Excellence
GCC News: Strategic Corporate Trends for 2026
