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The sector also dealt with more comprehensive macro headwinds, including a more cautious policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and greater energy costs. Thematic ETFs Struggled for the many part, particularly those linked to carbon and high-growth innovation, as appraisal pressures and global rate dynamics weighed on performance.
The petrochemical ETF significantly surpassed. Circulations in Q1 2026 were modest and extremely focused, showing selective allocation rather than broad market involvement. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a little number of items drawing in brand-new capital. This shows that financiers were targeting particular exposures, while reducing or rotating out of others.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. A lot of activity appears to have taken place in the secondary market, enabling investors to adjust positions without substantial main developments or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic exposure focused on global luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted belief and costs throughout the quarter, it has driven more volume and interest in regional possessions.
In spite of continuous geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, keeping positive growth momentum recently. While disputes in the larger area and worldwide financial uncertainty remain a structural restriction, GCC countries have up until now limited their impact on domestic financial efficiency through strong financial positions, policy continuity, and sustained financial investment.
3.2 percent growth 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, showing a shift toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) jobs global development relieving 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 growth would put 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 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 represent more than 73 percent of overall GDP, a share that has continued to increase as 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, improving credit conditions, and rising investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform stay central to sustaining this pattern. Policy measures focused on bring in foreign direct 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 rate volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are anticipated to play a supportive function in 2026.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) projects global growth 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 expansion would put the region 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 fairly high-growth pocketprovided that regional risk conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to increase as federal governments expand financial investment in services, infrastructure, and technology. 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 infrastructure.
Public-sector investment and reform remain central to sustaining this pattern. Policy measures focused on attracting foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are anticipated to play a helpful function in 2026.
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