All Categories
Featured
Table of Contents
The sector likewise faced broader macro headwinds, consisting of a more mindful policy backdrop in China and global risk-off belief driven by geopolitical stress and higher energy costs. Thematic ETFs also struggled for the many part, particularly those linked to carbon and high-growth innovation, as valuation pressures and worldwide rate dynamics weighed on efficiency.
Flows in Q1 2026 were modest and extremely concentrated, showing selective allocation rather than broad market involvement. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with just a little number of products bring in brand-new capital.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have actually taken place in the secondary market, allowing financiers to adjust positions without significant main productions or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a specific niche thematic direct exposure focused on worldwide high-end and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development associating with ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and prices throughout the quarter, it has actually driven more volume and interest in local assets.
Despite continuous geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, keeping positive development momentum in current years. While disputes in the larger region and global financial uncertainty stay a structural restriction, GCC countries have actually up until now restricted their effect on domestic economic efficiency through strong fiscal positions, policy connection, and sustained financial investment.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) projects global 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 place 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 regional threat conditions stay consisted of and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to increase as federal governments expand financial investment in services, infrastructure, 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 investment in technology and AI-related infrastructure.
Public-sector investment and reform stay main to sustaining this trend. Policy procedures targeted at attracting foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are expected to play a supportive function in 2026.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth 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 expansion would position the region 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 reasonably high-growth pocketprovided that regional threat conditions remain 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 total GDP, a share that has continued to rise as governments expand investment in services, facilities, 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, enhancing credit conditions, and rising financial investment in innovation and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this pattern. Policy procedures aimed at drawing in foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are anticipated to play a supportive role in 2026.
Latest Posts

Comparing Corporate Strategy Models within the GCC
Traditional Vs Global Approaches Within the MENA Market
Why Analytics Shapes GCC Enterprise Vision