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The sector also dealt with more comprehensive macro headwinds, consisting of a more cautious policy background in China and global risk-off sentiment driven by geopolitical tensions and higher energy rates. Thematic ETFs Struggled for the a lot of part, especially those linked to carbon and high-growth innovation, as appraisal pressures and global rate characteristics weighed on performance.
The petrochemical ETF significantly outshined. Flows in Q1 2026 were modest and extremely focused, showing selective allowance rather than broad market participation. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a small number of products attracting brand-new capital. This suggests that investors were targeting particular 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 larger and more liquid ETFs. A lot of activity appears to have taken place in the secondary market, making it possible for investors to change positions without considerable main productions or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a specific niche thematic direct exposure focused on worldwide luxury and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some development connecting to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually impacted sentiment and costs throughout the quarter, it has actually driven more volume and interest in regional assets.
Regardless of continuous geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, maintaining positive development momentum over the last few years. While conflicts in the broader region and global financial uncertainty remain a structural constraint, GCC countries have so far limited their influence on domestic economic efficiency through strong financial positions, policy continuity, and sustained investment.
The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating 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 toward more favorable overall conditions.
The Benefits of Operational Excellence in 2026The IMF's World Economic Outlook (October 2025) projects worldwide development alleviating to 3.1 percent in 2026, with advanced 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 area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly 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 actually continued to rise as governments broaden 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 financial investment in innovation and AI-related facilities.
Public-sector investment and reform remain central to sustaining this pattern. Policy procedures targeted at attracting foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a helpful role in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs international growth relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC growth would position the region materially ahead of the world average and somewhat 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 reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to rise as 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, enhancing credit conditions, and rising investment in innovation and AI-related infrastructure.
GCC Economic News and Strategic RealitiesPublic-sector investment and reform stay central to sustaining this trend. Policy procedures targeted at attracting foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a helpful function in 2026.
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