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The sector also dealt with wider macro headwinds, including a more cautious policy background in China and international risk-off sentiment driven by geopolitical tensions and greater energy rates. Thematic ETFs also had a hard time for the many part, especially those linked to carbon and high-growth innovation, as valuation pressures and worldwide rate dynamics weighed on performance.
The petrochemical ETF substantially outshined. Flows in Q1 2026 were modest and highly concentrated, showing selective allowance rather than broad market participation. Despite weak efficiency, ETFs recorded $27.1 million in net inflows, with only a small number of items drawing in new capital. This suggests that investors were targeting specific exposures, while decreasing or turning out of others.
Trading activity remained stable, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have actually occurred in the secondary market, allowing financiers to adjust positions without significant main productions or redemptions. While recent geopolitical events have resulted in more financial pressure on GCC nations, the area remains durable and well capitalized to handle the circumstance.
In January, Boreas released its S&P Global High-end UCITS ETF, including a specific niche thematic exposure focused on global luxury and consumer 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 release in April pending a final approval from ADX.
Q1 2026 showed some progress associating with ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted sentiment and costs throughout the quarter, it has driven more volume and interest in local assets.
Regardless of ongoing geopolitical tensions and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show resilience, keeping positive growth momentum in the last few years. While conflicts in the larger area and global economic uncertainty stay a structural restriction, GCC nations have actually so far restricted their influence on domestic economic efficiency through strong fiscal positions, policy connection, and continual financial investment.
The World Bank, on the other hand, projects 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable total conditions.
Standardizing Operations Throughout Diverse Gulf Company LandscapesThe IMF's World Economic Outlook (October 2025) jobs global development alleviating to 3.1 percent in 2026, with sophisticated 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 region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that regional threat conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently account for 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 throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and increasing investment in technology and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this trend. Policy measures targeted at bring in foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a supportive function 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, reflecting a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth reducing 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 comparison, a 4.44.5 percent GCC expansion would position the region 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 threat conditions remain contained and reform momentum holds.
Data 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 governments broaden investment in services, facilities, 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 increasing investment in technology and AI-related infrastructure.
Standardizing Operations Throughout Diverse Gulf Company LandscapesPublic-sector financial investment and reform stay main to sustaining this trend. Policy steps targeted at attracting foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play an encouraging role in 2026.
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