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The sector likewise dealt with broader macro headwinds, consisting of a more mindful policy backdrop in China and worldwide risk-off belief driven by geopolitical tensions and higher energy costs. Thematic ETFs Had a hard time for the most part, especially those linked to carbon and high-growth innovation, as valuation pressures and international rate characteristics weighed on performance.
The petrochemical ETF substantially outshined. Circulations in Q1 2026 were modest and extremely focused, reflecting selective allowance rather than broad market participation. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of products drawing in brand-new capital. This indicates that financiers were targeting particular exposures, while minimizing or rotating out of others.
Trading activity stayed constant, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. A lot of activity appears to have actually taken location in the secondary market, making it possible for financiers to adjust positions without substantial primary creations or redemptions. While current geopolitical events have resulted in more financial pressure on GCC nations, the region remains resistant and well capitalized to handle the circumstance.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused on international luxury and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development associating with ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted belief and costs throughout the quarter, it has driven more volume and interest in regional properties.
Despite ongoing geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, preserving positive development momentum recently. While disputes in the wider area and worldwide financial uncertainty remain a structural constraint, GCC nations have so far limited their effect on domestic financial performance through strong financial positions, policy connection, and sustained financial investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development 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.
Is Your Outsourcing Service Provider Ready for the 2026 Transition?The IMF's World Economic Outlook (October 2025) tasks global 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 growth would put 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 relatively high-growth pocketprovided that regional risk conditions remain included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to rise as governments broaden financial investment in services, infrastructure, and technology. 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 rising financial investment in technology and AI-related infrastructure.
Public-sector financial investment and reform remain main to sustaining this pattern. Policy measures targeted at drawing in foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are expected to play an encouraging role in 2026.
3.2 percent growth 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 overall conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth alleviating 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 comparison, a 4.44.5 percent GCC expansion would position 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 relatively high-growth pocketprovided that local risk conditions remain contained and reform momentum holds.
Data 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 increase as governments broaden 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, improving credit conditions, and increasing financial investment in technology and AI-related facilities.
What the 2026 Outsourcing Landscape Looks Like for GCC FirmsPublic-sector investment and reform stay main to sustaining this pattern. Policy steps focused on drawing in foreign direct financial investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the region's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a helpful role in 2026.
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