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The sector likewise faced more comprehensive macro headwinds, including a more mindful policy background in China and global risk-off belief driven by geopolitical stress and higher energy costs. Thematic ETFs also struggled for the most part, particularly those linked to carbon and high-growth innovation, as evaluation pressures and global rate dynamics weighed on performance.
The petrochemical ETF considerably outperformed. Flows in Q1 2026 were modest and extremely focused, reflecting selective allowance instead of broad market participation. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a small number of items bring in new capital. This suggests that investors were targeting particular direct exposures, while lowering or rotating out of others.
Trading activity stayed constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have actually occurred in the secondary market, allowing financiers to change positions without substantial main developments or redemptions. While recent geopolitical occasions have actually resulted in more monetary pressure on GCC nations, the area stays resilient and well capitalized to handle the scenario.
In January, Boreas released its S&P Global High-end UCITS ETF, including a niche thematic direct exposure focused on international luxury 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 anticipated to release in April pending a last approval from ADX.
Q1 2026 revealed some progress connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the dispute has affected sentiment and prices during the quarter, it has driven more volume and interest in regional properties.
Despite ongoing geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, preserving favorable growth momentum recently. While disputes in the larger area and international economic uncertainty stay a structural constraint, GCC countries have so far limited their effect on domestic financial performance through strong fiscal positions, policy connection, and continual financial investment.
3.2 percent development 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 favorable overall conditions.
Understanding the current Regulative Patterns in Qatar and OmanThe 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 developing economies simply above 4 percent. On that contrast, 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, strengthening the GCC's status as a relatively high-growth pocketprovided that local risk conditions remain contained 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 increase as federal governments broaden financial investment in services, infrastructure, 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, enhancing credit conditions, and increasing financial investment in technology and AI-related infrastructure.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy steps targeted at bring in foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a helpful function in 2026.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. 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) projects worldwide development reducing 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 growth would position the region 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 reasonably high-growth pocketprovided that local risk conditions stay included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to increase as governments expand investment in services, facilities, and technology. 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 technology and AI-related facilities.
Public-sector financial investment and reform stay central to sustaining this trend. Policy steps aimed at bring in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the area's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play a helpful role in 2026.
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