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The sector likewise dealt with wider macro headwinds, consisting of a more cautious policy backdrop in China and international risk-off belief driven by geopolitical tensions and higher energy prices. Thematic ETFs Struggled for the many part, particularly those linked to carbon and high-growth innovation, as assessment pressures and worldwide rate dynamics weighed on performance.
The petrochemical ETF considerably outperformed. Circulations in Q1 2026 were modest and extremely focused, showing selective allocation instead of broad market participation. Despite weak performance, ETFs recorded $27.1 million in net inflows, with only a small number of items drawing in new capital. This suggests that financiers were targeting specific exposures, while reducing or turning out of others.
Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have taken place in the secondary market, enabling financiers to adjust positions without considerable main developments or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a niche thematic exposure focused on worldwide high-end and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 showed some progress associating with ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted belief and rates during the quarter, it has actually driven more volume and interest in local assets.
Despite continuous geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, preserving favorable development momentum recently. While conflicts in the larger region and global financial uncertainty remain a structural restraint, GCC nations have up until now limited their effect on domestic economic efficiency through strong fiscal positions, policy continuity, and sustained financial investment.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift towards more favorable total conditions.
The IMF's World Economic Outlook (October 2025) tasks international growth relieving to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would place the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that local danger conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to rise as federal governments broaden financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across 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 financial investment and reform remain main to sustaining this trend. Policy steps intended at attracting foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are expected to play a supportive role 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 forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth relieving to 3.1 percent in 2026, with innovative 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 slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that local danger conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of total GDP, a share that has continued to rise as governments broaden financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across 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 infrastructure.
Public-sector investment and reform stay main to sustaining this pattern. Policy measures targeted at drawing in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play a helpful role in 2026.
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