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The sector likewise dealt with more comprehensive macro headwinds, consisting of a more careful policy background in China and international risk-off sentiment driven by geopolitical stress and greater energy rates. Thematic ETFs Struggled for the a lot of part, especially those connected to carbon and high-growth innovation, as valuation pressures and global rate dynamics weighed on performance.
The petrochemical ETF substantially surpassed. Flows in Q1 2026 were modest and highly concentrated, showing selective allocation instead of broad market involvement. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of items bring in brand-new capital. This shows that investors were targeting particular exposures, while reducing or rotating out of others.
Trading activity remained constant, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have taken location in the secondary market, allowing financiers to change positions without considerable primary productions or redemptions.
In January, Boreas released its S&P Global High-end UCITS ETF, adding a specific niche thematic direct exposure focused on worldwide 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 anticipated to release in April pending a last approval from ADX.
Q1 2026 revealed some development associating with ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually affected belief and rates during the quarter, it has driven more volume and interest in regional assets.
Regardless of continuous geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, preserving favorable development momentum over the last few years. While conflicts in the larger area and worldwide financial uncertainty remain a structural restraint, GCC nations have so far restricted their effect on domestic economic efficiency through strong financial positions, policy connection, and sustained financial investment.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF similarly 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 towards more favorable general conditions.
How to Successfully Implement Future Strategies for 2026The IMF's World Economic Outlook (October 2025) tasks worldwide 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 expansion would place the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that local threat conditions remain included 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 actually continued to increase as federal governments expand investment in services, facilities, 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 increasing financial investment in technology and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy procedures targeted at bring in foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play a helpful function 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 increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive overall conditions.
The IMF's World Economic Outlook (October 2025) tasks international 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 place the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that local danger conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden financial investment in services, infrastructure, and technology. 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 innovation and AI-related facilities.
Ways to Utilize Market Research for GrowthPublic-sector investment and reform stay central to sustaining this trend. Policy steps targeted at attracting foreign direct investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are anticipated to play a helpful function in 2026.
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