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The sector also dealt with broader macro headwinds, consisting of a more cautious policy backdrop in China and global risk-off belief driven by geopolitical stress and higher energy rates. Thematic ETFs Struggled for the many part, particularly those connected to carbon and high-growth technology, as appraisal pressures and worldwide rate dynamics weighed on performance.
Circulations in Q1 2026 were modest and highly concentrated, showing selective allocation rather than broad market participation. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a small number of items bring in brand-new capital.
Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. A lot of activity appears to have taken location in the secondary market, enabling financiers to change positions without substantial main creations or redemptions. While current geopolitical occasions have actually resulted in more monetary pressure on GCC countries, the area remains durable and well capitalized to handle the scenario.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, including a niche thematic direct exposure concentrated on worldwide high-end and customer 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 introduce in April pending a final approval from ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the dispute has actually impacted sentiment and rates during the quarter, it has actually driven more volume and interest in local assets.
In spite of ongoing geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, preserving positive growth momentum in the last few years. While conflicts in the larger region and international economic uncertainty stay a structural constraint, GCC countries have so far restricted their influence on domestic financial efficiency through strong financial positions, policy connection, and sustained financial investment.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) tasks global growth alleviating 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 contrast, 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, enhancing 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 show that non-oil sectors already represent more than 73 percent of total GDP, a share that has actually continued to rise as federal 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, improving credit conditions, and increasing financial investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain main to sustaining this trend. Policy procedures aimed at bring in foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil profits are anticipated to play a helpful function in 2026.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) jobs global development relieving 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 contrast, a 4.44.5 percent GCC expansion would position 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 fairly high-growth pocketprovided that local risk conditions remain consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has continued to rise as governments broaden investment in services, facilities, and innovation. 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 technology and AI-related facilities.
Public-sector investment and reform stay main to sustaining this pattern. Policy steps focused on bring in foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play an encouraging function in 2026.
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