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The sector also faced broader macro headwinds, including a more mindful policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy costs. Thematic ETFs also had a hard time for the a lot of part, especially those connected to carbon and high-growth innovation, as assessment pressures and worldwide rate characteristics weighed on efficiency.
The petrochemical ETF significantly outperformed. Flows in Q1 2026 were modest and highly concentrated, showing selective allotment rather than broad market participation. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a little number of products bring in brand-new capital. This shows that financiers were targeting specific exposures, while minimizing or turning out of others.
Trading activity remained stable, with average 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Most activity appears to have actually occurred in the secondary market, allowing investors to change positions without significant primary creations or redemptions. While current geopolitical occasions have led to more financial pressure on GCC nations, the area remains resilient and well capitalized to handle the situation.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a specific niche thematic exposure concentrated on global high-end and customer 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 launch in April pending a final approval from ADX.
Q1 2026 showed some progress connecting to ETFs in the GCC. We anticipate more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected sentiment and prices throughout the quarter, it has driven more volume and interest in regional assets.
In spite of ongoing geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, preserving favorable growth momentum recently. While disputes in the broader area and worldwide economic uncertainty remain a structural restraint, GCC nations have actually so far limited their influence on domestic economic efficiency through strong financial positions, policy connection, and sustained investment.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide growth alleviating 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 growth would put the area materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a relatively high-growth pocketprovided that local threat conditions remain included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden investment in services, infrastructure, and technology. 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 central to sustaining this trend. Policy steps targeted at attracting foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and lower the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil revenues are anticipated to play a supportive function in 2026.
3.2 percent growth in 2025, accelerating 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 toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide 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 comparison, a 4.44.5 percent GCC expansion would put 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 fairly high-growth pocketprovided that local danger conditions stay 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 continued to increase as federal governments broaden financial 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 increasing financial investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform remain main to sustaining this trend. Policy steps aimed at bring in foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play an encouraging role in 2026.
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