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The sector also faced more comprehensive macro headwinds, including a more careful policy background in China and international risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs Had a hard time for the many part, especially those linked to carbon and high-growth innovation, as assessment pressures and global rate dynamics weighed on efficiency.
The petrochemical ETF substantially surpassed. Flows in Q1 2026 were modest and highly focused, reflecting selective allocation instead of broad market involvement. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of products bring in new capital. This shows that investors were targeting particular direct exposures, while decreasing or turning out of others.
Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have actually taken place in the secondary market, allowing financiers to change positions without significant main productions or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure concentrated on worldwide high-end and customer brand names. 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 launch in April pending a last approval from ADX.
Q1 2026 showed some progress associating with ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted belief and rates during the quarter, it has driven more volume and interest in regional properties.
Regardless of ongoing geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, maintaining favorable development momentum in the last few years. While disputes in the larger region and global economic uncertainty remain a structural restriction, GCC nations have 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, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) tasks global growth relieving 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 area 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 reasonably high-growth pocketprovided that regional threat conditions remain consisted of and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall 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 throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform stay central to sustaining this trend. Policy procedures targeted at attracting foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area'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.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects international growth reducing 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 growth would put the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional risk conditions stay consisted of 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 rise as 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 facilities.
Analysing 2026 Market Data for Strategic InsightsPublic-sector financial investment and reform stay main to sustaining this pattern. Policy measures targeted at bring in foreign direct investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the area's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play an encouraging role in 2026.
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