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The sector also faced more comprehensive macro headwinds, including a more careful policy background in China and global risk-off sentiment driven by geopolitical stress and higher energy costs. Thematic ETFs Had a hard time for the a lot of part, particularly those linked to carbon and high-growth innovation, as assessment pressures and global rate characteristics weighed on efficiency.
The petrochemical ETF significantly exceeded. Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allowance instead of broad market involvement. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with only a small number of items attracting new capital. This shows that investors were targeting specific direct exposures, while decreasing or rotating out of others.
Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Most activity appears to have actually taken location in the secondary market, making it possible for investors to change positions without significant primary developments or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure focused on worldwide luxury and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development connecting to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually affected sentiment and costs throughout the quarter, it has actually driven more volume and interest in local properties.
Regardless of continuous geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, keeping positive growth momentum in the last few years. While disputes in the wider area and international financial uncertainty remain a structural constraint, GCC countries have so far restricted their effect on domestic financial performance through strong financial positions, policy continuity, and sustained financial investment.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up 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, reflecting a shift towards more positive overall conditions.
Creating a Future-Proof Outsourcing Structure for the AreaThe IMF's World Economic Outlook (October 2025) projects worldwide development relieving to 3.1 percent in 2026, with sophisticated 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 put 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 reasonably high-growth pocketprovided that regional threat conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to increase as governments expand financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout 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 trend. Policy procedures targeted at attracting foreign direct investment, easing foreign ownership rules, broadening 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 dominate the growth outlook, oil incomes are expected to play a supportive function in 2026.
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 positive overall conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide development reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would put the region 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 remain contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to increase as federal governments broaden investment in services, facilities, 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 increasing financial investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform stay central to sustaining this pattern. Policy procedures focused on bring in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play a supportive function in 2026.
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