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The sector also faced broader macro headwinds, consisting of a more mindful policy backdrop in China and worldwide risk-off belief driven by geopolitical stress and higher energy prices. Thematic ETFs Had a hard time for the a lot of part, especially those linked to carbon and high-growth innovation, as appraisal pressures and worldwide rate characteristics weighed on performance.
The petrochemical ETF substantially surpassed. Circulations in Q1 2026 were modest and extremely focused, showing selective allotment rather than broad market participation. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of products bring in new capital. This shows that financiers were targeting particular exposures, while decreasing or turning out of others.
Trading activity remained steady, 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 taken place in the secondary market, allowing investors to adjust positions without significant main developments or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a niche thematic exposure focused on global luxury and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We expect 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 actually driven more volume and interest in local assets.
In spite of continuous geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, maintaining positive development momentum in recent years. While disputes in the wider region and global financial unpredictability remain a structural constraint, GCC countries have actually up until now limited their effect on domestic financial efficiency through strong fiscal positions, policy continuity, and continual investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable total conditions.
Reviewing 2026 Market Data for Strategic InsightsThe IMF's World Economic Outlook (October 2025) jobs worldwide development relieving 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 comparison, a 4.44.5 percent GCC growth would position 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 stay included and reform momentum holds.
Data 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 broaden investment in services, facilities, 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, enhancing credit conditions, and rising investment in innovation and AI-related facilities.
Public-sector investment and reform stay central to sustaining this pattern. Policy steps focused on attracting foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play a supportive function in 2026.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) projects international growth easing 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 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 reasonably high-growth pocketprovided that regional danger conditions remain included and reform momentum holds.
Data from the GCC Statistical Center show 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, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout the GCC is forecasted 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 main to sustaining this pattern. Policy steps targeted at drawing in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the region's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play an encouraging function in 2026.
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