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The sector also faced broader macro headwinds, consisting of a more careful policy background in China and international risk-off belief driven by geopolitical tensions and higher energy prices. Thematic ETFs also had a hard time for the a lot of part, especially those connected to carbon and high-growth innovation, as appraisal pressures and worldwide rate dynamics weighed on performance.
The petrochemical ETF significantly surpassed. Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allowance rather than broad market involvement. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a small number of items bring in brand-new capital. This suggests that financiers were targeting particular direct exposures, while lowering or turning out of others.
Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have taken place in the secondary market, making it possible for investors to change positions without considerable primary creations or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, including a specific niche thematic exposure focused on global high-end and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted belief and rates throughout the quarter, it has driven more volume and interest in local possessions.
Regardless of continuous geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, keeping favorable growth momentum recently. While disputes in the broader area and worldwide financial unpredictability stay a structural constraint, GCC nations have actually so far restricted their effect on domestic financial performance through strong fiscal positions, policy connection, and sustained financial 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, reflecting a shift towards more favorable total conditions.
Reviewing New GCC Data for Strategic InsightsThe IMF's World Economic Outlook (October 2025) jobs international 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 contrast, a 4.44.5 percent GCC expansion would put 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 relatively high-growth pocketprovided that regional danger conditions stay consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to rise as governments expand financial investment in services, facilities, 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 investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this trend. Policy procedures targeted at drawing in foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are anticipated to play a helpful function in 2026.
The World Bank, on the other hand, tasks 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 increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) jobs international growth easing to 3.1 percent in 2026, with innovative 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 position the area 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 regional danger conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to rise as governments broaden financial investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout the GCC is predicted 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 infrastructure.
Why Is Operational Excellence Crucial for Future Expansion?Public-sector financial investment and reform stay central to sustaining this pattern. Policy procedures intended at bring in foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are expected to play an encouraging role in 2026.
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