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The sector also dealt with broader macro headwinds, including a more mindful policy background in China and worldwide risk-off belief driven by geopolitical stress and higher energy rates. Thematic ETFs also struggled for the most part, especially those connected to carbon and high-growth innovation, as evaluation pressures and global rate characteristics weighed on performance.
The petrochemical ETF considerably outshined. Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allotment rather than broad market involvement. Despite weak performance, ETFs taped $27.1 million in net inflows, with just a small number of items attracting new capital. This shows that financiers were targeting specific exposures, while lowering or rotating out of others.
Trading activity remained constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually taken location in the secondary market, making it possible for financiers to change positions without significant main productions or redemptions.
In January, Boreas released its S&P Global High-end UCITS ETF, including a niche thematic direct exposure focused on worldwide high-end and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually affected belief and prices during the quarter, it has actually driven more volume and interest in regional assets.
Regardless of ongoing geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, maintaining positive development momentum recently. While disputes in the larger area and global economic uncertainty remain a structural restriction, GCC nations have actually so far restricted their influence on domestic financial performance through strong financial positions, policy connection, and sustained financial investment.
The World Bank, on the other hand, jobs 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) tasks global 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 growth 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 reasonably high-growth pocketprovided that regional threat conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments expand investment in services, facilities, 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, improving credit conditions, and increasing investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this trend. Policy measures focused on bring in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the region's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play a helpful role in 2026.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs international growth easing 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 put the region 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 fairly high-growth pocketprovided that local threat conditions stay 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 continued to increase as federal governments expand 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, enhancing credit conditions, and rising financial investment in technology and AI-related facilities.
Public-sector investment and reform stay central to sustaining this pattern. Policy measures focused on bring in foreign direct investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil incomes are anticipated to play a helpful function in 2026.
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