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The sector likewise dealt with broader macro headwinds, consisting of a more careful policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and greater energy prices. Thematic ETFs also had a hard time for the a lot of part, especially those connected to carbon and high-growth technology, as assessment pressures and global rate characteristics weighed on efficiency.
The petrochemical ETF considerably surpassed. Flows in Q1 2026 were modest and extremely focused, reflecting selective allowance rather than broad market participation. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of products attracting brand-new capital. This shows that financiers were targeting particular direct exposures, while reducing or rotating out of others.
Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually taken place in the secondary market, allowing investors to adjust positions without considerable primary creations or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure focused on worldwide high-end and consumer 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 launch in April pending a final approval from ADX.
Q1 2026 revealed some progress connecting to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted belief and costs during the quarter, it has driven more volume and interest in regional assets.
Regardless of ongoing geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, maintaining positive development momentum in the last few years. While disputes in the broader region and global financial uncertainty remain a structural constraint, GCC countries have actually so far limited their influence on domestic economic efficiency through strong fiscal positions, policy continuity, and continual investment.
3.2 percent development in 2025, accelerating 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, showing a shift toward more positive overall conditions.
Actionable Tips for Navigating the GCC LandscapeThe IMF's World Economic Outlook (October 2025) projects global development easing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position 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 fairly high-growth pocketprovided that regional risk conditions remain consisted of and reform momentum holds.
Data 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 governments broaden financial investment in services, infrastructure, 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 remain central to sustaining this trend. Policy measures targeted at attracting foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the area's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues 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 predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive total 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 establishing 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 somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that regional danger conditions stay contained 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 rise as governments broaden financial 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 investment in technology and AI-related facilities.
Actionable Tips for Navigating the GCC LandscapePublic-sector financial investment and reform remain main to sustaining this trend. Policy steps aimed at bring in foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are expected to play an encouraging function in 2026.
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