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The sector likewise faced broader macro headwinds, consisting of a more mindful policy backdrop in China and international risk-off sentiment driven by geopolitical stress and higher energy prices. Thematic ETFs Had a hard time for the many part, especially those linked to carbon and high-growth technology, as valuation pressures and global rate dynamics weighed on efficiency.
The petrochemical ETF significantly exceeded. Flows in Q1 2026 were modest and highly focused, reflecting selective allowance instead of broad market involvement. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with just a little number of products attracting new capital. This shows that investors were targeting specific direct exposures, while reducing or rotating out of others.
Trading activity stayed stable, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have actually taken place in the secondary market, making it possible for investors to change positions without significant main productions or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a niche thematic direct exposure concentrated on global high-end 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 last approval from ADX.
Q1 2026 showed some development 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 affected sentiment and prices during the quarter, it has driven more volume and interest in local assets.
Despite continuous geopolitical tensions and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, keeping favorable growth momentum in recent years. While disputes in the broader area and international financial unpredictability remain a structural constraint, GCC countries have actually so far limited their effect on domestic economic performance through strong fiscal positions, policy continuity, and continual investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive overall conditions.
Charting GCC Corporate Strategy in 2026The IMF's World Economic Outlook (October 2025) jobs worldwide development alleviating 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 contrast, a 4.44.5 percent GCC expansion would position 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 relatively high-growth pocketprovided that regional risk conditions remain contained and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to rise as federal governments broaden financial investment in services, facilities, 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, improving credit conditions, and increasing financial investment in innovation and AI-related facilities.
Public-sector financial investment and reform stay central to sustaining this pattern. Policy procedures focused on attracting foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play a supportive function in 2026.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) tasks international growth reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, 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, strengthening the GCC's status as a relatively high-growth pocketprovided that local risk conditions stay consisted of and reform momentum holds.

Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has actually continued to increase as governments expand financial 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 innovation and AI-related infrastructure.
Charting GCC Corporate Strategy in 2026Public-sector financial investment and reform remain main to sustaining this pattern. Policy steps focused on drawing in foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected to play an encouraging function in 2026.
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