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The sector likewise dealt with wider macro headwinds, consisting of a more mindful policy backdrop in China and worldwide risk-off sentiment driven by geopolitical stress and higher energy costs. Thematic ETFs also had a hard time for the most part, particularly those linked to carbon and high-growth innovation, as evaluation pressures and global rate dynamics weighed on performance.
The petrochemical ETF substantially surpassed. Circulations in Q1 2026 were modest and extremely concentrated, showing selective allocation instead of broad market involvement. Despite weak performance, ETFs taped $27.1 million in net inflows, with just a small number of products bring in brand-new capital. This shows that investors were targeting specific exposures, while minimizing or turning out of others.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have actually taken place in the secondary market, enabling investors to adjust positions without considerable primary developments or redemptions.
In January, Boreas released its S&P Global High-end UCITS ETF, adding a niche thematic exposure concentrated on worldwide high-end and consumer 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 revealed some progress relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted sentiment and prices throughout the quarter, it has driven more volume and interest in regional assets.
In spite of ongoing geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, maintaining favorable development momentum in recent years. While disputes in the broader region and international financial uncertainty remain a structural constraint, GCC nations have up until now restricted their effect on domestic financial efficiency through strong fiscal positions, policy continuity, and sustained financial investment.
3.2 percent growth in 2025, speeding up 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, showing a shift towards more favorable total conditions.
How GCC Shared Solutions Are Redefining Functional ExcellenceThe IMF's World Economic Outlook (October 2025) tasks global development alleviating 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 expansion 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 fairly high-growth pocketprovided that local threat conditions stay consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to increase as governments expand financial investment in services, facilities, and innovation. 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, improving credit conditions, and increasing investment in technology and AI-related facilities.
Public-sector investment and reform stay central to sustaining this trend. Policy procedures focused on 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 decrease the region's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play a supportive function in 2026.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) projects international growth relieving 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 place the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a reasonably high-growth pocketprovided that regional risk conditions remain included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to increase as governments broaden 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, improving credit conditions, and increasing investment in innovation and AI-related infrastructure.
Adjusting to the Changing Face of Omani Service RegulationsPublic-sector financial investment and reform stay main to sustaining this trend. Policy procedures focused on attracting foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play a supportive function in 2026.
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