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The sector also faced broader macro headwinds, consisting of a more mindful policy backdrop in China and global risk-off belief driven by geopolitical tensions and higher energy costs. Thematic ETFs also struggled for the many part, particularly those linked to carbon and high-growth technology, as assessment pressures and global rate characteristics weighed on performance.
The petrochemical ETF considerably exceeded. Circulations in Q1 2026 were modest and extremely concentrated, showing selective allocation instead of broad market involvement. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with just a small number of items bring in brand-new capital. This suggests that financiers were targeting particular exposures, while minimizing or turning out of others.
Trading activity stayed 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 place in the secondary market, allowing investors to change positions without significant main developments or redemptions.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a specific niche thematic exposure concentrated on international high-end and customer 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 expected to introduce in April pending a final approval from ADX.
Q1 2026 showed some progress connecting to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted sentiment and costs throughout the quarter, it has driven more volume and interest in regional properties.
In spite of ongoing geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, keeping positive growth momentum in current years. While conflicts in the larger region and global economic unpredictability remain a structural restriction, GCC nations have actually so far restricted their impact on domestic financial performance through strong financial positions, policy continuity, and sustained investment.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable overall conditions.
Strategic Strategy for GCC SuccessThe IMF's World Economic Outlook (October 2025) tasks global development easing 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 a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that regional danger conditions remain 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 actually continued to rise as governments broaden 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 innovation and AI-related infrastructure.
Public-sector financial investment and reform remain main to sustaining this trend. Policy procedures focused on attracting 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 cost volatility. While hydrocarbons no longer control 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, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive total conditions.
The IMF's World Economic Outlook (October 2025) tasks global development reducing 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 comparison, a 4.44.5 percent GCC expansion would put the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that local threat conditions stay contained and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of overall GDP, a share that has actually continued to rise as governments broaden investment in services, infrastructure, and technology. 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 increasing financial investment in innovation and AI-related facilities.
Public-sector financial investment and reform stay main to sustaining this trend. Policy steps intended at bring in foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil profits are expected to play a supportive function in 2026.
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