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The sector likewise faced broader macro headwinds, including a more cautious policy backdrop in China and worldwide risk-off sentiment driven by geopolitical stress and higher energy prices. Thematic ETFs likewise had a hard time for the a lot of part, especially those connected to carbon and high-growth innovation, as appraisal pressures and worldwide rate dynamics weighed on performance.
The petrochemical ETF considerably surpassed. Flows in Q1 2026 were modest and extremely focused, reflecting selective allowance instead of broad market involvement. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items drawing in new capital. This shows that financiers were targeting particular direct exposures, while reducing or turning out of others.
Trading activity stayed constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. The majority of activity appears to have actually taken place in the secondary market, enabling investors to adjust positions without substantial main creations or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic exposure concentrated on global 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 release in April pending a final approval from ADX.
Q1 2026 showed some progress relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the conflict has affected sentiment and costs during the quarter, it has driven more volume and interest in regional assets.
Despite continuous geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, preserving positive development momentum in the last few years. While disputes in the broader area and worldwide economic uncertainty remain a structural constraint, GCC countries have up until now limited their impact on domestic economic performance through strong fiscal 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 increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive general conditions.
The Shift From Standard Shared Services to Intelligent HubsThe 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 developing economies just 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 regional danger conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to rise as 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 technology and AI-related facilities.
Public-sector investment and reform remain central to sustaining this trend. Policy steps targeted at drawing in foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected 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 predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) projects international development 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 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 threat conditions stay included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to rise as federal governments expand investment in services, infrastructure, 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 investment in technology and AI-related infrastructure.
The Shift From Standard Shared Services to Intelligent HubsPublic-sector investment and reform remain main to sustaining this pattern. Policy measures targeted at attracting foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are anticipated to play an encouraging role in 2026.
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