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The sector likewise dealt with wider macro headwinds, consisting of a more careful policy background in China and international risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs Struggled for the a lot of part, especially those linked to carbon and high-growth innovation, as valuation pressures and worldwide rate dynamics weighed on performance.
The petrochemical ETF considerably surpassed. Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allotment rather than broad market participation. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with just a small number of products drawing in new capital. This indicates that investors were targeting specific direct exposures, while minimizing or rotating out of others.
Trading activity remained stable, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have occurred in the secondary market, making it possible for investors to change positions without substantial primary productions or redemptions. While current geopolitical occasions have resulted in more financial pressure on GCC countries, the region stays resistant and well capitalized to handle the circumstance.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure focused on worldwide high-end and consumer 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 revealed some progress associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected belief and rates during the quarter, it has actually driven more volume and interest in regional properties.
Regardless of ongoing geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, maintaining positive development momentum in the last few years. While conflicts in the wider area and global financial uncertainty stay a structural restraint, GCC nations have so far limited their effect on domestic financial performance through strong financial positions, policy connection, and sustained investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable overall conditions.
Transforming the UAE Employee Experience for a Hybrid PeriodThe IMF's World Economic Outlook (October 2025) projects international development reducing to 3.1 percent in 2026, with sophisticated 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 area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that regional risk conditions stay included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to rise as governments expand investment in services, infrastructure, and innovation. 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 remain main to sustaining this pattern. Policy procedures targeted at drawing in foreign direct investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play an encouraging role in 2026.
The World Bank, on the other hand, projects 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift toward more positive total 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 developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would place the region materially ahead of the world average and somewhat 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 remain included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to rise as governments broaden 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 investment in innovation and AI-related facilities.
Public-sector investment and reform remain main to sustaining this pattern. Policy steps targeted at attracting foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the region's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a supportive function in 2026.
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