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The sector also dealt with broader macro headwinds, consisting of a more cautious policy background in China and worldwide risk-off belief driven by geopolitical stress and higher energy rates. Thematic ETFs also struggled for the a lot of part, particularly those connected to carbon and high-growth innovation, as appraisal pressures and worldwide rate dynamics weighed on efficiency.
The petrochemical ETF significantly outshined. Flows in Q1 2026 were modest and extremely concentrated, showing selective allotment rather than broad market participation. In spite of weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of products drawing in brand-new capital. This indicates that financiers were targeting particular direct exposures, while reducing or turning out of others.
Trading activity stayed consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Many activity appears to have taken location in the secondary market, making it possible for financiers to change positions without substantial primary 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 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 expected to release in April pending a final approval from ADX.
Q1 2026 showed some development relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the dispute has affected sentiment and rates throughout the quarter, it has driven more volume and interest in regional assets.
Regardless of ongoing geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, preserving positive growth momentum recently. While conflicts in the wider region and international financial uncertainty remain a structural restraint, GCC countries have actually so far limited their influence on domestic financial performance through strong financial positions, policy connection, and sustained investment.
3.2 percent growth in 2025, speeding up 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, showing a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) jobs international growth relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, 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 remain consisted of 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 rise as federal governments broaden financial investment in services, infrastructure, and innovation. 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 innovation and AI-related facilities.
Public-sector investment and reform stay central to sustaining this trend. Policy measures aimed at bring in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are expected to play an encouraging function in 2026.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth 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.
The IMF's World Economic Outlook (October 2025) projects 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 contrast, a 4.44.5 percent GCC expansion would position the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that local risk conditions stay contained 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 continued to rise as federal governments expand investment in services, facilities, 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 rising financial investment in technology and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this trend. Policy measures intended at bring in foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a supportive function in 2026.
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