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The sector likewise dealt with wider macro headwinds, consisting of a more mindful policy background in China and global risk-off belief driven by geopolitical tensions and higher energy rates. Thematic ETFs Struggled for the many part, particularly those linked to carbon and high-growth technology, as appraisal pressures and international rate characteristics weighed on performance.
The petrochemical ETF considerably exceeded. Flows 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 drawing in new capital. This shows that financiers were targeting specific direct exposures, while minimizing or turning out of others.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. A lot of activity appears to have actually happened in the secondary market, enabling financiers to adjust positions without significant main developments or redemptions. While recent geopolitical occasions have actually resulted in more monetary pressure on GCC nations, the region stays resistant and well capitalized to deal with the scenario.
In January, Boreas released its S&P Global High-end UCITS ETF, including a specific niche thematic direct exposure concentrated on international high-end 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 development associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted belief and prices throughout the quarter, it has actually driven more volume and interest in local possessions.
Despite ongoing geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, preserving positive development momentum in the last few years. While disputes in the larger area and worldwide financial unpredictability remain a structural restriction, GCC nations have so far limited their effect on domestic economic performance through strong financial positions, policy continuity, and sustained investment.
3.2 percent growth in 2025, accelerating 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 overall conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development alleviating 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 contrast, a 4.44.5 percent GCC expansion would place 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 relatively high-growth pocketprovided that local danger conditions remain consisted of 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 expand financial investment in services, facilities, and innovation. 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 investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this trend. Policy measures intended at drawing in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are anticipated to play a supportive role in 2026.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF 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 favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks international growth relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, 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, strengthening the GCC's status as a relatively high-growth pocketprovided that local threat conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden financial 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, enhancing credit conditions, and increasing investment in innovation and AI-related facilities.
The Strategic Guide to GCC Industrial Success for 2026Public-sector financial investment and reform stay main to sustaining this pattern. Policy procedures targeted at drawing in foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play an encouraging role in 2026.
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