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The sector also faced broader macro headwinds, including a more careful policy background in China and global risk-off belief driven by geopolitical tensions and higher energy prices. Thematic ETFs also had a hard time for the most part, especially those connected to carbon and high-growth innovation, as evaluation pressures and global rate dynamics weighed on performance.
The petrochemical ETF significantly surpassed. Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allowance instead of broad market participation. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of items attracting new capital. This suggests that financiers were targeting specific direct exposures, while minimizing or turning out of others.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have actually taken location in the secondary market, allowing financiers to change positions without considerable main creations or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic direct exposure focused on worldwide high-end and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually affected belief and rates throughout the quarter, it has actually driven more volume and interest in regional properties.
Regardless of continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, keeping positive growth momentum in the last few years. While disputes in the larger region and worldwide financial unpredictability remain a structural restraint, GCC nations have actually up until now restricted their effect on domestic economic efficiency through strong fiscal positions, policy connection, and sustained financial investment.
The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise 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 positive overall conditions.
Comparing Future-Focused Strategies Against Legacy BusinessThe IMF's World Economic Outlook (October 2025) projects global growth relieving 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 growth would put the area 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 fairly high-growth pocketprovided that local danger conditions stay consisted of and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has continued to increase as governments broaden financial 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 increasing financial investment in technology and AI-related facilities.
Public-sector investment and reform stay main to sustaining this pattern. Policy procedures aimed at bring in foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are expected to play a supportive function in 2026.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) tasks international development alleviating to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that regional risk conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to increase as federal 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, enhancing credit conditions, and increasing financial investment in technology and AI-related infrastructure.
Comparing Future-Focused Strategies Against Legacy BusinessPublic-sector financial investment and reform stay central to sustaining this pattern. Policy steps targeted at drawing in foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are expected to play an encouraging role in 2026.
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