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The sector also dealt with wider macro headwinds, including a more mindful policy background in China and worldwide risk-off sentiment driven by geopolitical stress and greater energy prices. Thematic ETFs Struggled for the most part, especially those connected to carbon and high-growth innovation, as evaluation pressures and international rate dynamics weighed on performance.
The petrochemical ETF significantly outperformed. Circulations in Q1 2026 were modest and extremely focused, showing selective allotment rather than broad market involvement. Regardless of weak efficiency, ETFs recorded $27.1 million in net inflows, with just a small number of items bring in brand-new capital. This shows that financiers were targeting particular direct exposures, while reducing or rotating out of others.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have taken location in the secondary market, enabling investors to change positions without significant main creations or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure focused on worldwide high-end and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed 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 affected sentiment and prices throughout the quarter, it has actually driven more volume and interest in regional possessions.
Despite continuous geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, preserving positive development momentum in the last few years. While disputes in the larger area and global economic unpredictability remain a structural constraint, GCC nations have actually so far limited their impact on domestic financial efficiency through strong financial positions, policy connection, and continual 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, reflecting a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks international growth easing 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 contrast, a 4.44.5 percent GCC expansion would place the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that local threat conditions stay included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to increase as governments expand financial 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 increasing investment in innovation and AI-related facilities.
Public-sector investment and reform remain main to sustaining this pattern. Policy procedures focused on attracting foreign direct financial investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play a helpful role in 2026.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development relieving 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 comparison, 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 relatively high-growth pocketprovided that regional threat conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to rise as governments broaden investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity across the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing investment in innovation and AI-related facilities.
The Operational Advantages of Advanced Strategy ResearchPublic-sector investment and reform remain main to sustaining this trend. Policy steps focused on attracting foreign direct financial investment, reducing foreign ownership rules, expanding 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 growth outlook, oil revenues are anticipated to play an encouraging role in 2026.
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