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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 stress and higher energy prices. Thematic ETFs likewise had a hard time for the most part, particularly those connected to carbon and high-growth technology, as evaluation pressures and international rate characteristics weighed on performance.
The petrochemical ETF considerably surpassed. Flows in Q1 2026 were modest and extremely focused, showing selective allocation rather than broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with only a small number of products bring in brand-new capital. This shows that investors were targeting particular exposures, while reducing or rotating out of others.
Trading activity stayed consistent, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. A lot of activity appears to have taken location in the secondary market, allowing financiers to change positions without considerable main creations or redemptions.
In January, Boreas launched its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure concentrated on global high-end and consumer 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 anticipated to launch in April pending a final approval from ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually impacted sentiment and rates throughout the quarter, it has driven more volume and interest in regional possessions.
In spite of continuous geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, keeping positive development momentum over the last few years. While disputes in the broader area and international financial unpredictability stay a structural constraint, GCC nations have so far limited their influence on domestic financial efficiency through strong financial positions, policy connection, and continual financial investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks international growth reducing 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 comparison, a 4.44.5 percent GCC growth would position the area 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 fairly high-growth pocketprovided that local risk conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall 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 throughout the GCC is forecasted 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 financial investment and reform remain main to sustaining this trend. Policy procedures aimed at attracting foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are anticipated to play an encouraging function in 2026.
The World Bank, on the other hand, projects 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) projects global 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 position 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 reasonably high-growth pocketprovided that regional danger conditions remain contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments broaden 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 rising investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy steps targeted at drawing in foreign direct financial 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 cost volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are anticipated to play a helpful role in 2026.
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