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The sector likewise faced wider macro headwinds, consisting of a more careful policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy prices. Thematic ETFs Had a hard time for the a lot of part, particularly those linked to carbon and high-growth innovation, as assessment pressures and international rate dynamics weighed on performance.
Circulations in Q1 2026 were modest and highly focused, reflecting selective allotment rather than broad market participation. Regardless of weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of items bring in brand-new capital.
Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Most activity appears to have taken place in the secondary market, enabling financiers to change positions without substantial primary creations or redemptions. While recent geopolitical occasions have actually led to more financial pressure on GCC countries, the area stays durable and well capitalized to deal with the scenario.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a specific niche thematic direct exposure focused on worldwide luxury and consumer 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 launch in April pending a last approval from ADX.
Q1 2026 showed some progress connecting 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 regional assets.
Regardless of ongoing geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show strength, maintaining favorable development momentum in the last few years. While conflicts in the larger region and worldwide financial unpredictability stay a structural restriction, GCC nations have up until now limited their influence on domestic economic efficiency through strong financial 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 likewise sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift towards more positive general conditions.
How Emerging Saudi Centers Are Attracting Global Financial InvestmentThe IMF's World Economic Outlook (October 2025) tasks international development easing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing 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 slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions remain included 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 governments broaden investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across 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 infrastructure.
Public-sector investment and reform remain main to sustaining this trend. Policy measures focused on attracting foreign direct financial investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector participation 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 profits are anticipated to play a supportive function in 2026.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more favorable total 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 developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would put the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that regional risk conditions remain contained and reform momentum holds.
Data from the GCC Statistical Center show 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, 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 investment in innovation and AI-related infrastructure.
Comparing Traditional Outsourcing with New Hybrid ModelsPublic-sector investment and reform stay central to sustaining this pattern. Policy steps targeted at drawing in foreign direct investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil growth and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play a supportive function in 2026.
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