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The sector also dealt with wider macro headwinds, consisting of a more careful policy backdrop in China and worldwide risk-off belief driven by geopolitical tensions and greater energy rates. Thematic ETFs Struggled for the most part, especially those connected to carbon and high-growth technology, as assessment pressures and international rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and extremely focused, reflecting selective allowance rather than broad market involvement. Despite weak performance, ETFs taped $27.1 million in net inflows, with just a little number of items attracting 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 happened in the secondary market, making it possible for financiers to change positions without considerable main developments or redemptions. While current geopolitical events have resulted in more monetary pressure on GCC nations, the area remains resilient and well capitalized to handle the scenario.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic exposure focused on global luxury and customer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC during 2026. While the dispute has impacted sentiment and costs during the quarter, it has driven more volume and interest in regional properties.
In spite of continuous geopolitical stress and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, keeping favorable growth momentum in the last few years. While disputes in the wider region and international financial uncertainty remain a structural restriction, GCC nations have actually so far restricted their effect on domestic financial efficiency through strong fiscal positions, policy continuity, and continual financial investment.
3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive total conditions.
Comprehending the Legal Shift Toward Sustainability in QatarThe IMF's World Economic Outlook (October 2025) tasks worldwide development relieving to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would place the area 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 relatively high-growth pocketprovided that local danger conditions remain included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to increase as governments broaden financial investment in services, facilities, and innovation. 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, enhancing credit conditions, and increasing investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this trend. Policy measures targeted at drawing in foreign direct investment, alleviating foreign ownership rules, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil revenues 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 Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive overall conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide development relieving 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 place the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that regional threat conditions remain consisted of 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 rise as federal governments broaden 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 rising financial investment in technology and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this trend. Policy steps targeted at bring in foreign direct financial investment, reducing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are anticipated to play a supportive function in 2026.
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