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The sector also dealt with wider macro headwinds, including a more mindful policy background in China and international risk-off belief driven by geopolitical stress and higher energy costs. Thematic ETFs Struggled for the many part, particularly those connected to carbon and high-growth innovation, as assessment pressures and international rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market participation. Despite weak performance, ETFs taped $27.1 million in net inflows, with only a little number of items attracting new capital.
Trading activity remained stable, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. The majority of activity appears to have actually taken location in the secondary market, making it possible for financiers to adjust positions without substantial main developments or redemptions.
In January, Boreas released its S&P Global High-end UCITS ETF, including a specific niche thematic exposure focused on international luxury and customer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected sentiment and rates during the quarter, it has driven more volume and interest in local assets.
Regardless of continuous geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, maintaining favorable growth momentum over the last few years. While disputes in the larger area and international financial uncertainty stay a structural restraint, GCC countries have so far limited their influence on domestic financial efficiency through strong financial positions, policy connection, and continual investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development 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.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth easing 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 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 reasonably 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 expand financial investment in services, facilities, and technology. 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, enhancing credit conditions, and rising investment in technology and AI-related facilities.
Public-sector investment and reform stay main to sustaining this trend. Policy measures aimed at drawing in foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and reduce the area's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play a helpful role in 2026.
The World Bank, on the other hand, jobs 3.2 percent development in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable total conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide growth easing 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 comparison, a 4.44.5 percent GCC expansion would put the area 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 included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to rise as federal governments expand 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 investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this trend. Policy procedures targeted at attracting foreign direct investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated to play a supportive role in 2026.
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