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The sector likewise faced wider macro headwinds, consisting of a more cautious policy backdrop in China and international risk-off belief driven by geopolitical tensions and greater energy prices. Thematic ETFs likewise struggled for the a lot of part, particularly those connected to carbon and high-growth technology, as assessment pressures and global rate dynamics weighed on performance.
The petrochemical ETF substantially outshined. Flows in Q1 2026 were modest and highly concentrated, reflecting selective allowance rather than broad market participation. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of items bring in brand-new capital. This shows that financiers were targeting specific exposures, while decreasing or turning out of others.
Trading activity stayed stable, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have actually happened in the secondary market, enabling financiers to adjust positions without considerable main productions or redemptions. While recent geopolitical occasions have actually led to more financial pressure on GCC countries, the area stays resistant and well capitalized to deal with the circumstance.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure concentrated on global high-end and consumer 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 introduce in April pending a final approval from ADX.
Q1 2026 showed some development associating with ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted sentiment and costs during the quarter, it has driven more volume and interest in regional possessions.
In spite of continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, preserving favorable development momentum recently. While disputes in the larger area and global economic uncertainty remain a structural restriction, GCC nations have actually so far limited their effect on domestic economic efficiency through strong financial positions, policy continuity, and continual financial investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable general conditions.
Advanced Planning for Middle East LeadershipThe IMF's World Economic Outlook (October 2025) tasks worldwide development easing 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 expansion would put 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 stay consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden financial investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity across the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and increasing investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy steps targeted 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 lower the region's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play a supportive function in 2026.
3.2 percent development 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, showing a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) jobs international 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 comparison, 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 reasonably high-growth pocketprovided that regional risk conditions stay consisted of and reform momentum holds.

Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments expand investment in services, infrastructure, 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, improving credit conditions, and rising financial investment in technology and AI-related infrastructure.
Advanced Planning for Middle East LeadershipPublic-sector financial investment and reform remain central to sustaining this pattern. Policy procedures targeted at bring in foreign direct investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are anticipated to play a supportive role in 2026.
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