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The sector likewise faced more comprehensive macro headwinds, including a more careful policy background in China and international risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs likewise had a hard time for the many part, especially those linked to carbon and high-growth technology, as assessment pressures and global rate characteristics weighed on efficiency.
Circulations in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with just a little number of items bring in new capital.
Trading activity remained steady, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Many activity appears to have taken place in the secondary market, making it possible for financiers to adjust positions without substantial main creations or redemptions. While current geopolitical occasions have actually led to more monetary pressure on GCC nations, the region remains durable and well capitalized to deal with the situation.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a specific 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 expected to launch in April pending a final approval from ADX.
Q1 2026 revealed some development associating with ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the conflict has affected belief and rates during the quarter, it has driven more volume and interest in regional possessions.
In spite of ongoing geopolitical stress and security threats throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, keeping favorable growth momentum over the last few years. While disputes in the larger area and worldwide economic uncertainty stay a structural restraint, GCC nations have actually up until now restricted their effect on domestic economic performance through strong fiscal positions, policy continuity, and sustained financial investment.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more favorable total conditions.
The IMF's World Economic Outlook (October 2025) tasks global development easing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and establishing 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, reinforcing the GCC's status as a fairly high-growth pocketprovided that local danger conditions remain included and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall 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 throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain central to sustaining this trend. Policy steps targeted at drawing in foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and minimize the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play a supportive role in 2026.
3.2 percent development 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, showing a shift toward more positive general conditions.
The IMF's World Economic Outlook (October 2025) jobs international development alleviating to 3.1 percent in 2026, with sophisticated 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 position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that local danger conditions stay included and reform momentum holds.
Information 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 rise as federal governments broaden 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, improving credit conditions, and rising financial investment in technology and AI-related facilities.
Crucial GCC Business Analysis Trends in 2026Public-sector investment and reform remain central to sustaining this pattern. Policy steps focused on attracting foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the region's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are anticipated to play an encouraging role in 2026.
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