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The sector also dealt with broader macro headwinds, including a more cautious 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 many part, particularly those connected to carbon and high-growth innovation, as appraisal pressures and worldwide rate dynamics weighed on performance.
The petrochemical ETF significantly exceeded. Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allotment instead of broad market involvement. Regardless of weak performance, ETFs taped $27.1 million in net inflows, with just a little number of items drawing in new capital. This indicates that investors were targeting particular direct exposures, while minimizing or rotating out of others.
Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Many activity appears to have actually taken place in the secondary market, making it possible for financiers to adjust positions without considerable primary developments or redemptions. While recent geopolitical events have led to more monetary pressure on GCC nations, the area stays resistant and well capitalized to handle the circumstance.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic exposure focused on global luxury and customer 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 launch in April pending a final approval from ADX.
Q1 2026 showed some progress relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted belief and rates during the quarter, it has actually driven more volume and interest in local possessions.
Despite continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, keeping favorable growth momentum over the last few years. While conflicts in the broader region and global financial uncertainty stay a structural constraint, GCC nations have actually up until now limited their influence on domestic economic performance through strong fiscal positions, policy connection, and continual investment.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift toward more positive general conditions.
Why Performance Is the Key Focus for UAE TalentThe IMF's World Economic Outlook (October 2025) jobs global 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 put 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 danger 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 total GDP, a share that has actually continued to increase as federal governments expand investment in services, facilities, 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, improving credit conditions, and increasing financial investment in technology and AI-related infrastructure.
Public-sector financial investment and reform remain central to sustaining this trend. Policy procedures focused on bring in foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are expected to play an encouraging role in 2026.
The World Bank, on the other hand, projects 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) projects international development reducing to 3.1 percent in 2026, with sophisticated 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 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 relatively high-growth pocketprovided that local danger conditions remain 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 continued to increase as governments expand financial investment in services, facilities, 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 rising investment in innovation and AI-related infrastructure.
Why Performance Is the Key Focus for UAE TalentPublic-sector financial investment and reform remain main to sustaining this trend. Policy steps aimed at attracting foreign direct investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and reduce the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil profits are anticipated to play a helpful function in 2026.
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