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The sector likewise dealt with more comprehensive macro headwinds, consisting of a more mindful policy background in China and global risk-off belief driven by geopolitical stress and higher energy rates. Thematic ETFs also had a hard time for the many part, especially those connected to carbon and high-growth technology, as evaluation pressures and global rate characteristics weighed on performance.
The petrochemical ETF significantly outshined. Flows in Q1 2026 were modest and extremely focused, reflecting selective allocation rather than broad market participation. Regardless of weak performance, ETFs taped $27.1 million in net inflows, with just a small number of products bring in brand-new capital. This shows that financiers were targeting particular exposures, while minimizing or rotating out of others.
Trading activity stayed stable, with typical 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Many activity appears to have actually taken place in the secondary market, making it possible for financiers to change positions without substantial primary developments or redemptions.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a specific niche thematic exposure focused on worldwide 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 relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted belief and costs throughout the quarter, it has actually driven more volume and interest in regional assets.
Despite continuous geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, keeping favorable growth momentum in recent years. While conflicts in the broader region and global financial unpredictability remain a structural restraint, GCC nations have actually so far restricted their effect on domestic economic performance 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 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 favorable total conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, 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, reinforcing the GCC's status as a reasonably high-growth pocketprovided that regional 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 continued to increase as 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 financial investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this pattern. Policy measures targeted at attracting foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play an encouraging function in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) projects global growth easing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion 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 risk conditions stay contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of overall GDP, a share that has continued to rise as federal governments broaden investment in services, facilities, and innovation. 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 financial investment in technology and AI-related facilities.
Public-sector investment and reform remain main to sustaining this pattern. Policy measures targeted at drawing in foreign direct investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the area's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play an encouraging role in 2026.
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