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The sector also dealt with wider macro headwinds, including a more cautious policy backdrop in China and international risk-off sentiment driven by geopolitical tensions and greater energy prices. Thematic ETFs also had a hard time for the many part, especially those linked to carbon and high-growth technology, as valuation pressures and worldwide rate dynamics weighed on performance.
The petrochemical ETF substantially outshined. Circulations in Q1 2026 were modest and highly concentrated, showing selective allotment rather than broad market involvement. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of products drawing in brand-new capital. This indicates that financiers were targeting specific exposures, while lowering or turning out of others.
Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually taken place in the secondary market, enabling financiers to change positions without substantial primary creations or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a specific niche thematic direct exposure focused on international luxury 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 release in April pending a final approval from ADX.
Q1 2026 revealed some progress connecting to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the dispute has impacted sentiment and costs during the quarter, it has driven more volume and interest in regional possessions.
Regardless of continuous geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, keeping favorable growth momentum in the last few years. While disputes 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 financial investment.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive overall conditions.
How Digital Shift Does Fuel Success?The IMF's World Economic Outlook (October 2025) jobs worldwide development alleviating 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 expansion would position 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 stay contained and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to increase as governments broaden financial 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 rising financial investment in technology and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this trend. Policy steps aimed at drawing in foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play an encouraging role in 2026.
3.2 percent development 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 favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks international development reducing 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 growth would put the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that local danger conditions stay 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 actually continued to increase as governments expand financial investment in services, infrastructure, 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 investment in technology and AI-related facilities.
How Digital Shift Does Fuel Success?Public-sector investment and reform stay central to sustaining this pattern. Policy steps focused on attracting foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play an encouraging function in 2026.
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