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The sector also dealt with more comprehensive macro headwinds, including a more cautious policy backdrop in China and worldwide risk-off belief driven by geopolitical tensions and greater energy costs. Thematic ETFs also struggled for the a lot of part, particularly those connected to carbon and high-growth innovation, as appraisal pressures and global rate dynamics weighed on performance.
The petrochemical ETF considerably exceeded. Circulations in Q1 2026 were modest and extremely concentrated, showing selective allocation rather than broad market involvement. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a small number of products bring in new capital. This suggests that financiers were targeting specific exposures, while reducing or rotating out of others.
Trading activity remained constant, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have actually happened in the secondary market, making it possible for investors to adjust positions without significant primary developments or redemptions. While recent geopolitical events have led to more financial pressure on GCC countries, the region remains resilient and well capitalized to handle the scenario.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a niche thematic direct exposure focused on international luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected belief and costs throughout the quarter, it has driven more volume and interest in local possessions.
Despite continuous geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate resilience, preserving favorable development momentum in current years. While conflicts in the wider area and international financial unpredictability remain a structural restraint, GCC countries have actually up until now restricted their effect on domestic financial performance through strong fiscal positions, policy continuity, and continual investment.
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 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.
How to Utilize GCC Intelligence for GrowthThe IMF's World Economic Outlook (October 2025) jobs international development alleviating to 3.1 percent in 2026, with sophisticated 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 put the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that regional 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 continued to rise as federal governments broaden financial 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 investment in technology and AI-related infrastructure.
Public-sector financial investment and reform remain main to sustaining this trend. Policy measures targeted at bring in foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are expected to play an encouraging 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 projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks global growth easing to 3.1 percent in 2026, with advanced 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 place the area 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 relatively high-growth pocketprovided that regional threat conditions remain consisted of and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to increase as federal governments expand investment in services, infrastructure, 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 rising financial investment in technology and AI-related infrastructure.
Public-sector investment and reform remain main to sustaining this pattern. Policy steps aimed at bring in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play a supportive role in 2026.
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