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The sector also faced more comprehensive macro headwinds, consisting of a more cautious policy backdrop in China and worldwide risk-off belief driven by geopolitical tensions and higher energy rates. Thematic ETFs likewise struggled for the a lot of part, especially those linked to carbon and high-growth technology, 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 allocation instead of broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with only a little number of products bring in new capital. This indicates that financiers were targeting specific exposures, while decreasing or turning out of others.
Trading activity stayed steady, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Many activity appears to have actually taken place in the secondary market, enabling investors to adjust positions without considerable primary developments or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a niche thematic exposure focused on global luxury 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 launch in April pending a last approval from 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 actually impacted belief and costs during the quarter, it has actually driven more volume and interest in regional assets.
Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, maintaining positive development momentum recently. While conflicts in the larger region and international financial uncertainty stay a structural constraint, GCC countries have actually so far limited their influence on domestic economic performance through strong fiscal positions, policy continuity, and sustained investment.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive total conditions.
Comparing Industrial Strategy Models across the GCCThe IMF's World Economic Outlook (October 2025) jobs worldwide growth easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would put the area 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 relatively high-growth pocketprovided that local 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 overall GDP, a share that has continued to increase as federal governments broaden 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, improving credit conditions, and increasing investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform stay main to sustaining this pattern. Policy steps intended at drawing in foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower 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.
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 growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs global growth easing 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 comparison, a 4.44.5 percent GCC expansion would put 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 fairly high-growth pocketprovided that regional threat conditions stay consisted of and reform momentum holds.

Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments expand financial investment in services, infrastructure, 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 rising investment in technology and AI-related infrastructure.
Public-sector financial investment and reform remain main to sustaining this pattern. Policy procedures focused on attracting foreign direct financial investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play an encouraging function in 2026.
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