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The sector likewise faced wider macro headwinds, consisting of a more mindful policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs likewise had a hard time for the most part, particularly those linked to carbon and high-growth innovation, as appraisal pressures and worldwide rate characteristics weighed on efficiency.
The petrochemical ETF significantly surpassed. Flows in Q1 2026 were modest and extremely focused, showing selective allowance rather than broad market participation. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with only a small number of items bring in new capital. This indicates that financiers were targeting specific exposures, while decreasing or turning out of others.
Trading activity stayed consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have actually taken location in the secondary market, allowing financiers to change positions without significant primary creations or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic exposure focused on worldwide luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected sentiment and prices throughout the quarter, it has driven more volume and interest in local assets.
Regardless of continuous geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, preserving positive growth momentum in current years. While disputes in the larger region and international economic uncertainty stay a structural restraint, GCC nations have so far limited their influence on domestic financial performance through strong financial positions, policy continuity, and sustained financial investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable general conditions.
Why Soft Abilities Are the New UAE Currency for 2026The IMF's World Economic Outlook (October 2025) tasks global development relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing 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, enhancing 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 show that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden 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, enhancing credit conditions, and rising investment in innovation and AI-related facilities.
Public-sector investment and reform remain main to sustaining this trend. Policy measures targeted at drawing in foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play a supportive function in 2026.
The World Bank, on the other hand, projects 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 increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion 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 fairly high-growth pocketprovided that local danger conditions stay contained and reform momentum holds.
Information 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 governments expand investment in services, infrastructure, 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, improving credit conditions, and increasing financial investment in technology and AI-related facilities.
Why Soft Abilities Are the New UAE Currency for 2026Public-sector investment and reform stay central to sustaining this trend. Policy steps intended at attracting foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play an encouraging role in 2026.
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