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The sector likewise faced more comprehensive macro headwinds, including a more cautious policy background in China and international risk-off belief driven by geopolitical tensions and greater energy costs. Thematic ETFs Had a hard time for the a lot of part, especially those linked to carbon and high-growth technology, as appraisal pressures and international rate dynamics weighed on performance.
The petrochemical ETF significantly outshined. Circulations in Q1 2026 were modest and extremely concentrated, showing selective allocation instead of broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with only a small number of items drawing in brand-new capital. This indicates that financiers were targeting particular exposures, while lowering or turning out of others.
Trading activity remained stable, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually taken place in the secondary market, enabling investors to change positions without significant primary productions or redemptions.
In January, Boreas released its S&P Global High-end UCITS ETF, adding a specific niche thematic direct exposure focused on worldwide high-end and customer brands. 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 last approval from ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected sentiment and rates during the quarter, it has actually driven more volume and interest in regional assets.
In spite of continuous geopolitical tensions and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, maintaining favorable development momentum recently. While conflicts in the broader region and international financial unpredictability remain a structural constraint, GCC countries have actually so far restricted their influence on domestic financial performance through strong fiscal positions, policy connection, and sustained financial investment.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth easing to 3.1 percent in 2026, with sophisticated 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 put the region materially ahead of the world average and somewhat 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 stay included 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 actually continued to increase as federal governments expand financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is projected 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 remain main to sustaining this pattern. Policy steps 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 reduce the area's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are expected to play a supportive function in 2026.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) projects global 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 growth would place the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that local risk 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 actually continued to rise as governments expand 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, enhancing credit conditions, and rising investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain central to sustaining this trend. Policy procedures targeted at drawing in foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are expected to play an encouraging function in 2026.
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