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The sector likewise faced wider macro headwinds, including a more mindful policy background in China and global risk-off sentiment driven by geopolitical tensions and higher energy costs. Thematic ETFs likewise struggled for the a lot of part, particularly those connected to carbon and high-growth innovation, as assessment pressures and worldwide rate dynamics weighed on performance.
The petrochemical ETF significantly surpassed. Circulations in Q1 2026 were modest and highly focused, showing selective allowance instead of broad market involvement. Regardless of weak performance, ETFs taped $27.1 million in net inflows, with just a small number of products bring in new capital. This indicates that financiers were targeting specific direct exposures, while minimizing or rotating out of others.
Trading activity stayed consistent, 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 released its S&P Global Luxury UCITS ETF, adding 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 progress associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has affected belief and rates throughout the quarter, it has actually driven more volume and interest in local properties.
Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, keeping positive development momentum in the last few years. While conflicts in the wider region and global economic uncertainty stay a structural restraint, GCC countries have actually up until now limited their influence on domestic economic efficiency through strong fiscal positions, policy continuity, and sustained investment.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable total conditions.
Utilizing GCC Research to Effectively Drive Operational GrowthThe IMF's World Economic Outlook (October 2025) jobs international growth reducing 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 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, strengthening the GCC's status as a reasonably high-growth pocketprovided that regional 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 total GDP, a share that has continued to rise as governments broaden investment in services, infrastructure, 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, enhancing credit conditions, and increasing investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy steps targeted at drawing in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are anticipated to play a supportive role in 2026.
3.2 percent development 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 toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) jobs global growth alleviating 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 comparison, 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, reinforcing the GCC's status as a reasonably high-growth pocketprovided that local threat conditions remain contained and reform momentum holds.

Information 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 broaden financial 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, enhancing credit conditions, and increasing financial investment in innovation and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy steps focused on attracting foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play a supportive function in 2026.
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