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The sector likewise dealt with more comprehensive macro headwinds, including a more careful policy backdrop in China and international risk-off belief driven by geopolitical tensions and greater energy costs. Thematic ETFs also had a hard time for the most part, particularly those linked to carbon and high-growth technology, as appraisal pressures and global rate dynamics weighed on efficiency.
The petrochemical ETF substantially outshined. Flows in Q1 2026 were modest and extremely focused, reflecting selective allotment instead of broad market participation. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a small number of items drawing in brand-new capital. This shows that financiers were targeting particular direct exposures, while decreasing or turning out of others.
Trading activity stayed steady, 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 taken place in the secondary market, enabling financiers to adjust positions without significant main creations or redemptions.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure focused on worldwide luxury and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC during 2026. While the dispute has affected belief and costs during the quarter, it has driven more volume and interest in regional assets.
In spite of ongoing geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show strength, preserving favorable development momentum recently. While conflicts in the broader area and international economic uncertainty stay a structural constraint, GCC nations have so far restricted their impact on domestic financial efficiency through strong fiscal positions, policy connection, and continual investment.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift towards more favorable general conditions.
Ways to Leverage Market Research for GrowthThe IMF's World Economic Outlook (October 2025) jobs worldwide growth easing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would put the region 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 contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to increase as federal governments broaden financial investment in services, facilities, 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, improving 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 procedures intended at drawing in foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are expected to play an encouraging role in 2026.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. 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) jobs worldwide growth reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would put 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 danger conditions stay contained and reform momentum holds.
Data 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 federal governments broaden financial investment in services, infrastructure, and innovation. 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 facilities.
Ways to Leverage Market Research for GrowthPublic-sector investment and reform stay central to sustaining this pattern. Policy measures focused on drawing in foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil earnings are expected to play an encouraging function in 2026.
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