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The sector also dealt with more comprehensive macro headwinds, consisting of a more cautious policy backdrop in China and global risk-off belief driven by geopolitical tensions and higher energy costs. Thematic ETFs Struggled for the many part, especially those connected to carbon and high-growth technology, as assessment pressures and worldwide rate dynamics weighed on efficiency.
The petrochemical ETF considerably outperformed. Flows in Q1 2026 were modest and extremely focused, reflecting selective allowance rather than broad market participation. Despite weak performance, ETFs recorded $27.1 million in net inflows, with only a little number of products drawing in new capital. This suggests that investors were targeting particular direct exposures, while reducing or rotating out of others.
Trading activity stayed stable, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. A lot of activity appears to have taken location in the secondary market, allowing financiers to adjust positions without substantial primary creations or redemptions.
In January, Boreas released its S&P Global Luxury UCITS ETF, adding a niche thematic exposure concentrated on worldwide luxury 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 anticipated to introduce in April pending a final approval from ADX.
Q1 2026 showed some progress connecting to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually affected belief and prices during the quarter, it has driven more volume and interest in local assets.
Regardless of ongoing geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, maintaining favorable development momentum recently. While conflicts in the broader region and global economic uncertainty stay a structural constraint, GCC countries have up until now restricted their effect on domestic economic efficiency through strong financial positions, policy continuity, and sustained financial investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable total conditions.
Evaluating Your GCC Outsourcing Partners for the Long TermThe IMF's World Economic Outlook (October 2025) projects global growth alleviating 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 comparison, a 4.44.5 percent GCC expansion would position the area 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 fairly high-growth pocketprovided that regional risk conditions remain contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to increase as federal governments expand investment in services, infrastructure, and innovation. 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 increasing financial investment in technology and AI-related facilities.
Public-sector investment and reform stay central to sustaining this pattern. Policy steps targeted at attracting foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the area's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play an encouraging function in 2026.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable general conditions.
The IMF's World Economic Outlook (October 2025) tasks global development alleviating 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 comparison, a 4.44.5 percent GCC expansion would place the region 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 remain included 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 actually 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 investment in technology and AI-related facilities.
Navigating Compliance Challenges in the Omani Service EnvironmentPublic-sector financial investment and reform stay central to sustaining this trend. Policy measures targeted at bring in foreign direct investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil earnings are anticipated to play a supportive role in 2026.
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