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The sector also faced more comprehensive macro headwinds, including a more cautious policy background in China and worldwide risk-off belief driven by geopolitical stress and greater energy rates. Thematic ETFs Struggled for the a lot of part, especially those linked to carbon and high-growth technology, as valuation pressures and global rate characteristics weighed on performance.
The petrochemical ETF substantially outshined. Circulations in Q1 2026 were modest and extremely focused, reflecting selective allocation rather than broad market involvement. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a little number of products attracting brand-new capital. This shows that investors were targeting specific 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 bigger and more liquid ETFs. Most activity appears to have actually taken location in the secondary market, allowing financiers to adjust positions without considerable primary productions or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure focused on international luxury 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 introduce in April pending a last approval from ADX.
Q1 2026 revealed some development associating with ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually impacted sentiment and prices throughout the quarter, it has driven more volume and interest in regional properties.
Regardless of ongoing geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, keeping favorable growth momentum in the last few years. While conflicts in the wider area and global financial uncertainty stay a structural constraint, GCC countries have actually up until now limited their effect on domestic financial performance through strong financial positions, policy continuity, and sustained investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive total conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide development easing 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 expansion would position 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 reasonably high-growth pocketprovided that local threat conditions remain contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has actually continued to rise as governments expand 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 rising financial investment in technology and AI-related infrastructure.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy procedures focused on attracting foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play an encouraging function in 2026.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would place 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 reasonably high-growth pocketprovided that regional danger conditions stay included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to rise as federal governments expand investment in services, facilities, 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 facilities.
Handling Legal Unpredictability in Emerging Middle East MarketsPublic-sector investment and reform remain central to sustaining this trend. Policy measures intended at attracting foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play an encouraging function in 2026.
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