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The sector likewise dealt with wider macro headwinds, consisting of a more cautious policy background in China and worldwide risk-off sentiment driven by geopolitical stress and greater energy rates. Thematic ETFs likewise 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 significantly surpassed. Flows in Q1 2026 were modest and highly focused, showing selective allocation rather than broad market participation. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a small number of products attracting new capital. This indicates that financiers were targeting particular exposures, while lowering or rotating out of others.
Trading activity stayed constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Many activity appears to have taken place in the secondary market, enabling financiers to adjust positions without considerable primary productions or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic exposure focused on global luxury and consumer brands. 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 introduce in April pending a last approval from ADX.
Q1 2026 showed some progress relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually affected belief and prices throughout the quarter, it has driven more volume and interest in local possessions.
Despite continuous geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate strength, keeping favorable growth momentum in current years. While disputes in the wider area and global financial unpredictability remain a structural restriction, GCC nations have actually up until now restricted their influence on domestic financial efficiency through strong fiscal positions, policy connection, and continual investment.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects international growth relieving 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 contrast, a 4.44.5 percent GCC expansion would put the area 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 reasonably high-growth pocketprovided that regional danger conditions remain contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to increase as federal governments broaden financial investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing investment in technology and AI-related infrastructure.
Public-sector financial investment and reform stay central to sustaining this pattern. Policy steps focused on drawing in foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play an encouraging function in 2026.
3.2 percent growth in 2025, accelerating 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 towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide development easing 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 region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a relatively high-growth pocketprovided that regional risk conditions stay included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to rise as federal governments broaden 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, enhancing credit conditions, and rising financial investment in innovation and AI-related facilities.
Public-sector investment and reform remain central to sustaining this trend. Policy procedures focused on bring in foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are expected to play a helpful role in 2026.
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