All Categories
Featured
Table of Contents
The sector likewise dealt with more comprehensive macro headwinds, consisting of a more cautious policy backdrop in China and global risk-off belief driven by geopolitical stress and greater energy rates. Thematic ETFs Had a hard time for the many part, particularly those connected to carbon and high-growth technology, as appraisal pressures and worldwide rate characteristics weighed on efficiency.
Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allocation rather than broad market participation. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of items attracting new capital.
Trading activity remained steady, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have happened in the secondary market, allowing investors to change positions without considerable main productions or redemptions. While recent geopolitical events have led to more financial pressure on GCC nations, the region stays durable and well capitalized to deal with the scenario.
In January, Boreas released its S&P Global Luxury UCITS ETF, adding a niche thematic exposure focused on worldwide high-end and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually affected belief and costs during the quarter, it has actually driven more volume and interest in local possessions.
In spite of continuous geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, maintaining positive development momentum over the last few years. While disputes in the wider area and international economic uncertainty stay a structural restraint, GCC countries have actually up until now limited their impact on domestic financial efficiency through strong fiscal positions, policy continuity, and continual 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 likewise sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift towards more favorable total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth alleviating to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would place the region 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 reasonably high-growth pocketprovided that local risk conditions stay included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to increase as governments broaden financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is forecasted 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 stay central to sustaining this pattern. Policy procedures aimed at bring in foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play an encouraging role 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 development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide development alleviating 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 place 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 risk conditions stay included and reform momentum holds.
Information from the GCC Statistical Center reveal 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 forecasted 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 infrastructure.
Future-Proofing Your GCC Business Through Tactical OutsourcingPublic-sector financial investment and reform stay central to sustaining this pattern. Policy procedures intended at drawing in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play a helpful role in 2026.
Latest Posts
Accelerating Dubai Industrial Growth through Strategy
Why Does Operational Excellence Crucial for Future Expansion?
Ways to Utilize Market Intelligence for 2026 Success
