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The sector likewise faced more comprehensive macro headwinds, including a more cautious policy backdrop in China and global risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs Had a hard time for the many part, particularly those connected to carbon and high-growth technology, as valuation pressures and worldwide rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and extremely concentrated, showing selective allotment rather than broad market participation. Regardless of weak performance, ETFs taped $27.1 million in net inflows, with only a small number of items bring in brand-new capital.
Trading activity remained constant, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. The majority of activity appears to have happened in the secondary market, enabling investors to adjust positions without substantial primary creations or redemptions. While recent geopolitical events have resulted in more financial pressure on GCC countries, the area remains durable and well capitalized to deal with the situation.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure focused on global luxury and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the dispute has impacted belief and costs throughout the quarter, it has driven more volume and interest in local 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 strength, keeping favorable development momentum in the last few years. While disputes in the larger region and international economic uncertainty stay a structural constraint, GCC countries have actually up until now restricted their effect on domestic economic performance through strong fiscal positions, policy connection, and sustained financial investment.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive general conditions.
Achieving Process Excellence in Dubai's Industrial SectorThe IMF's World Economic Outlook (October 2025) projects international growth relieving 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 expansion would put the region 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 regional risk conditions stay consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to rise as governments broaden financial 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, improving credit conditions, and rising financial investment in technology and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this trend. Policy steps aimed at drawing in foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play a supportive function in 2026.
3.2 percent growth 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 toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development 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 contrast, a 4.44.5 percent GCC growth would place the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a relatively high-growth pocketprovided that local risk 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 overall GDP, a share that has continued to increase as federal governments broaden investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity across 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 facilities.
Essential Middle East Market Research Insights in 2026Public-sector investment and reform remain central to sustaining this pattern. Policy steps targeted at attracting foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play a helpful function in 2026.
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