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The sector also faced more comprehensive macro headwinds, consisting of a more mindful policy backdrop in China and global risk-off sentiment driven by geopolitical stress and higher energy costs. Thematic ETFs likewise struggled for the a lot of part, particularly those linked to carbon and high-growth innovation, as appraisal pressures and global rate dynamics weighed on performance.
The petrochemical ETF considerably outperformed. Flows in Q1 2026 were modest and highly concentrated, reflecting selective allowance rather than broad market involvement. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of items attracting new capital. This shows that financiers were targeting specific exposures, while minimizing or turning 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. The majority of activity appears to have actually taken place in the secondary market, allowing financiers to adjust positions without substantial primary developments or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, including a specific niche thematic exposure concentrated on global high-end 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 expected to release in April pending a final approval from ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and rates throughout the quarter, it has driven more volume and interest in regional possessions.
In spite of ongoing geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, keeping positive development momentum recently. While conflicts in the broader area and worldwide economic uncertainty remain a structural restraint, GCC countries have actually so far restricted their effect on domestic financial performance through strong financial positions, policy connection, and continual investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to rise 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) jobs international development relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would put the area 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 reasonably high-growth pocketprovided that regional risk conditions stay contained 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, infrastructure, and technology. 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 rising financial investment in innovation and AI-related infrastructure.
Public-sector investment and reform stay main to sustaining this pattern. Policy procedures targeted at attracting foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play a helpful function in 2026.
The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) jobs global development relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would position 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 local threat conditions stay consisted of 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 continued to rise as federal governments broaden financial 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, improving credit conditions, and rising investment in technology and AI-related facilities.
Why Centralization Is the Secret to GCC Company ScalabilityPublic-sector investment and reform remain central to sustaining this trend. Policy steps aimed at drawing in foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected to play an encouraging function in 2026.
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