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The sector likewise dealt with broader macro headwinds, consisting of a more mindful policy background in China and international risk-off belief driven by geopolitical stress and higher energy rates. Thematic ETFs Had a hard time for the a lot of part, especially those connected to carbon and high-growth innovation, as assessment pressures and global rate dynamics weighed on efficiency.
The petrochemical ETF considerably surpassed. Flows in Q1 2026 were modest and extremely focused, showing selective allocation rather than broad market participation. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a small number of items bring in brand-new capital. This suggests that investors were targeting particular direct exposures, while minimizing or turning out of others.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Many activity appears to have taken place in the secondary market, enabling investors to change positions without substantial primary developments or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a 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 introduce in April pending a final approval from ADX.
Q1 2026 showed some development connecting to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the conflict has impacted belief and prices throughout the quarter, it has actually driven more volume and interest in local assets.
Despite continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, preserving positive growth momentum in the last few years. While disputes in the wider region and worldwide economic uncertainty stay a structural restriction, GCC nations have actually so far restricted their effect on domestic financial efficiency 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 forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development alleviating 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 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 risk conditions remain included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall 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 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 infrastructure.
Public-sector investment and reform remain central to sustaining this pattern. Policy measures targeted at attracting foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play an encouraging role in 2026.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) tasks global growth relieving 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 put 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 relatively high-growth pocketprovided that regional danger conditions remain 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 rise as 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, enhancing credit conditions, and increasing investment in technology and AI-related facilities.
Mapping Your Development Course Through Saudi's New Service HubsPublic-sector financial investment and reform stay central to sustaining this pattern. Policy procedures aimed at attracting foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play an encouraging role in 2026.
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