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The sector also faced more comprehensive macro headwinds, consisting of a more mindful policy background in China and worldwide risk-off belief driven by geopolitical stress and greater energy prices. Thematic ETFs also struggled for the many part, particularly those connected to carbon and high-growth technology, as assessment pressures and worldwide rate characteristics weighed on efficiency.
The petrochemical ETF substantially outperformed. Flows in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market participation. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with only a small number of products bring in brand-new capital. This indicates that investors were targeting specific direct exposures, while decreasing or turning out of others.
Trading activity stayed stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Most activity appears to have taken place in the secondary market, allowing financiers to adjust positions without significant primary productions or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic exposure concentrated on international luxury 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 launch in April pending a last approval from ADX.
Q1 2026 showed some development associating with ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted belief and rates throughout the quarter, it has driven more volume and interest in regional assets.
Regardless of continuous geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, keeping favorable development momentum recently. While disputes in the larger area and worldwide economic uncertainty stay a structural constraint, GCC countries have up until now restricted their impact on domestic financial efficiency through strong fiscal positions, policy continuity, and sustained financial investment.
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 favorable overall conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would place the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably 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 represent more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments expand investment in services, facilities, and technology. 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 stay central to sustaining this trend. Policy steps targeted at bring in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play a helpful function in 2026.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to increase 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) jobs international growth reducing 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 place 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 local threat conditions remain included and reform momentum holds.

Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to rise as federal governments broaden financial investment in services, infrastructure, and innovation. 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 rising financial investment in innovation and AI-related infrastructure.
Strategic Tips On Managing GCC Economy ComplexityPublic-sector investment and reform remain main to sustaining this trend. Policy procedures aimed at bring in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the area's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are anticipated to play a supportive function in 2026.
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