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The sector also faced wider macro headwinds, including a more careful policy backdrop in China and global risk-off sentiment driven by geopolitical tensions and greater energy rates. Thematic ETFs also had a hard time for the most part, especially those linked to carbon and high-growth technology, as assessment pressures and international rate dynamics weighed on efficiency.
The petrochemical ETF significantly surpassed. Flows in Q1 2026 were modest and highly concentrated, showing selective allowance rather than broad market involvement. Despite weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of items bring in new capital. This shows that investors were targeting specific direct exposures, while minimizing or turning out of others.
Trading activity stayed stable, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have taken location in the secondary market, allowing investors to adjust positions without significant primary creations or redemptions.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a niche thematic direct 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 last approval from ADX.
Q1 2026 showed some progress connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually affected belief and prices during 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 development momentum in recent years. While conflicts in the wider region and worldwide financial unpredictability remain a structural restraint, GCC countries have so far restricted their influence on domestic financial performance through strong fiscal positions, policy connection, and sustained financial 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 projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive overall conditions.
Is Your Outsourcing Company Ready for the 2026 Transition?The IMF's World Economic Outlook (October 2025) jobs global growth easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing economies simply 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 regional threat conditions stay included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall 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 throughout the GCC is forecasted 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 stay central to sustaining this pattern. Policy measures targeted at drawing in foreign direct financial investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play a helpful role in 2026.
3.2 percent development 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 toward more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects international growth 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 contrast, 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, reinforcing the GCC's status as a relatively high-growth pocketprovided that local risk conditions stay included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to increase as governments expand financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across 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.
Is Your Outsourcing Company Ready for the 2026 Transition?Public-sector investment and reform stay main to sustaining this pattern. Policy procedures focused on drawing in foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are expected to play a helpful role in 2026.
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