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The sector also dealt with broader macro headwinds, including a more cautious policy backdrop in China and global risk-off belief driven by geopolitical tensions and higher energy rates. Thematic ETFs likewise struggled for the many part, especially those linked to carbon and high-growth innovation, as evaluation pressures and global rate characteristics weighed on efficiency.
The petrochemical ETF substantially surpassed. Circulations in Q1 2026 were modest and extremely concentrated, showing selective allocation rather than broad market participation. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of items drawing in brand-new capital. This indicates that investors were targeting specific exposures, while lowering or turning out of others.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, concentrated 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 considerable main productions or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure concentrated on global high-end and customer brand names. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are expected to release in April pending a final approval from ADX.
Q1 2026 showed some development associating with ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted belief and prices during the quarter, it has driven more volume and interest in local assets.
Despite ongoing geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, keeping favorable growth momentum over the last few years. While disputes in the wider area and international economic uncertainty stay a structural restriction, GCC countries have actually up until now limited their influence on domestic financial efficiency 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 predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects global growth 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 contrast, a 4.44.5 percent GCC expansion would put 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 reasonably high-growth pocketprovided that regional threat conditions stay included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has actually continued to increase as federal 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, enhancing 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 steps focused on attracting foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected to play an encouraging role 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 rise 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 international development alleviating to 3.1 percent in 2026, with sophisticated 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 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 reasonably high-growth pocketprovided that local risk conditions stay consisted of 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 continued to increase as governments expand 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, enhancing credit conditions, and rising financial investment in technology and AI-related facilities.
Public-sector financial investment and reform stay central to sustaining this pattern. Policy measures targeted at drawing in foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play a helpful role in 2026.
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