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The sector likewise faced wider macro headwinds, including a more careful policy backdrop in China and global risk-off sentiment driven by geopolitical stress and greater energy costs. Thematic ETFs Struggled for the a lot of part, particularly those connected to carbon and high-growth innovation, as valuation pressures and worldwide rate dynamics weighed on efficiency.
Circulations in Q1 2026 were modest and highly focused, showing selective allocation rather than broad market involvement. Despite weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a small number of products attracting brand-new capital.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have actually taken place in the secondary market, allowing investors to adjust positions without significant primary developments or redemptions. While recent geopolitical occasions have resulted in more financial pressure on GCC countries, the area stays durable and well capitalized to handle the scenario.
In January, Boreas introduced its S&P Global Luxury UCITS ETF, adding a specific niche thematic direct exposure concentrated on international high-end and customer 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 showed some development connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has impacted belief and prices throughout the quarter, it has actually driven more volume and interest in regional properties.
In spite of ongoing geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, preserving favorable growth momentum over the last few years. While conflicts in the wider area and worldwide economic uncertainty stay a structural constraint, GCC nations have so far restricted their effect on domestic financial performance 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 forecasted 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 global growth alleviating to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position 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 fairly high-growth pocketprovided that local danger conditions remain consisted of and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to rise as governments expand financial 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 rising investment in innovation and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this pattern. Policy procedures focused on bring in foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are anticipated to play a helpful function 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 likewise sees momentum improving, with GCC output development projected to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, reflecting a shift towards more positive total conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide 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 contrast, a 4.44.5 percent GCC growth would position the area 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 reasonably high-growth pocketprovided that regional threat conditions remain included and reform momentum holds.
Data 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 rise as federal governments expand 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 rising financial investment in innovation and AI-related facilities.
Public-sector investment and reform stay central to sustaining this trend. Policy steps focused on bring in foreign direct investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil profits are expected to play an encouraging role in 2026.
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