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The sector likewise faced broader macro headwinds, consisting of a more cautious policy backdrop in China and worldwide risk-off belief driven by geopolitical tensions and greater energy rates. Thematic ETFs likewise had a hard time for the many part, especially those linked to carbon and high-growth technology, as evaluation pressures and global rate dynamics weighed on performance.
The petrochemical ETF substantially surpassed. Circulations in Q1 2026 were modest and highly focused, showing selective allowance instead of broad market involvement. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with only a small number of items attracting brand-new capital. This suggests that investors were targeting specific direct exposures, while lowering or rotating out of others.
Trading activity remained stable, with average 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, allowing financiers to change positions without substantial primary creations or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, adding a specific niche thematic exposure focused on worldwide high-end and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed 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 actually impacted belief and rates during the quarter, it has driven more volume and interest in regional properties.
Regardless of continuous geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, keeping favorable growth momentum over the last few years. While disputes in the broader area and international financial unpredictability stay a structural constraint, GCC nations have up until now limited their influence on domestic financial performance through strong fiscal positions, policy connection, and continual investment.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development relieving to 3.1 percent in 2026, with innovative 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 put 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 relatively high-growth pocketprovided that local risk conditions stay included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has actually continued to increase 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, improving credit conditions, and rising financial investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain central to sustaining this trend. Policy measures aimed at attracting foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's direct exposure to oil cost volatility. While hydrocarbons no longer control the development 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 growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks global growth alleviating 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 slightly 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 consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden investment in services, facilities, and technology. According to Oxford Economics, non-energy activity across the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising financial investment in technology and AI-related facilities.
Browsing the Intricacies of Oman's Evolving Investment LawsPublic-sector investment and reform remain central to sustaining this trend. Policy procedures focused on bring in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play an encouraging role in 2026.
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