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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 sentiment driven by geopolitical stress and higher energy prices. Thematic ETFs Had a hard time for the many part, especially those linked to carbon and high-growth innovation, as appraisal pressures and global rate dynamics weighed on efficiency.
The petrochemical ETF considerably surpassed. Flows in Q1 2026 were modest and extremely focused, reflecting selective allocation rather than broad market participation. Regardless of weak efficiency, ETFs recorded $27.1 million in net inflows, with just a small number of products attracting brand-new capital. This indicates that investors were targeting specific exposures, while decreasing or rotating out of others.
Trading activity stayed steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Many activity appears to have taken place in the secondary market, making it possible for financiers to change positions without substantial main developments or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, adding a niche thematic direct exposure concentrated on global high-end and customer brand names. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are anticipated to launch in April pending a last approval from ADX.
Q1 2026 revealed some development associating with ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected belief and costs throughout the quarter, it has driven more volume and interest in regional properties.
Regardless of ongoing geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, keeping favorable growth momentum in recent years. While conflicts in the wider region and worldwide economic uncertainty stay a structural restraint, GCC countries have so far limited their influence on domestic financial performance through strong financial positions, policy connection, and continual investment.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) projects global development relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would position the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that regional risk conditions stay consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden investment in services, infrastructure, 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, improving credit conditions, and increasing financial investment in technology and AI-related facilities.
Public-sector investment and reform stay central to sustaining this trend. Policy steps targeted at drawing in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the region's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play a supportive 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 development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) jobs global development reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would put the region 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 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 already represent more than 73 percent of overall GDP, a share that has actually continued to increase as governments expand financial 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 technology and AI-related facilities.
Public-sector investment and reform remain main to sustaining this trend. Policy procedures targeted at attracting foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play an encouraging role in 2026.
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