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The sector likewise dealt with wider macro headwinds, consisting of a more mindful policy backdrop in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy rates. Thematic ETFs likewise struggled for the many part, especially those linked to carbon and high-growth technology, as valuation pressures and global rate dynamics weighed on efficiency.
The petrochemical ETF considerably outperformed. Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allocation instead of broad market involvement. Despite weak performance, ETFs taped $27.1 million in net inflows, with only a little number of products attracting brand-new capital. This indicates that investors were targeting specific direct exposures, while reducing or turning out of others.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Many activity appears to have actually taken place in the secondary market, enabling investors to adjust positions without significant main creations or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a niche thematic exposure focused on global high-end and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually impacted belief and costs during the quarter, it has driven more volume and interest in local properties.
In spite of continuous geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, keeping positive development momentum recently. While conflicts in the larger region and worldwide financial uncertainty stay a structural constraint, GCC nations have actually so far limited their impact on domestic economic efficiency through strong fiscal positions, policy connection, and continual financial investment.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift toward more favorable general conditions.
Is Your Service Design Flexible Enough for Saudi Expansion?The IMF's World Economic Outlook (October 2025) jobs worldwide development alleviating to 3.1 percent in 2026, with advanced 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 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 fairly high-growth pocketprovided that regional risk conditions remain included and reform momentum holds.
Information 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 rise as governments broaden investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout the GCC is forecasted 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 investment and reform remain main to sustaining this pattern. Policy measures 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 reduce the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil profits are expected 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 growth predicted 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) jobs worldwide growth reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth would place 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 fairly high-growth pocketprovided that regional danger conditions stay contained 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 rise as governments expand financial investment in services, infrastructure, 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 innovation and AI-related facilities.
From Expense Centers to Value Drivers: The SSC AdvancementPublic-sector investment and reform remain central to sustaining this trend. Policy steps targeted at drawing in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play an encouraging role in 2026.
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