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The sector also faced broader macro headwinds, consisting of a more cautious policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and higher energy rates. Thematic ETFs Struggled for the most part, especially those linked to carbon and high-growth technology, as valuation pressures and global rate characteristics weighed on performance.
Flows in Q1 2026 were modest and highly focused, reflecting selective allotment rather than broad market participation. In spite of weak performance, ETFs taped $27.1 million in net inflows, with just a little number of products bring in brand-new capital.
Trading activity stayed consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have actually taken location in the secondary market, allowing investors to adjust positions without significant main productions or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, including a niche thematic exposure focused 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 release in April pending a final approval from ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted belief and prices throughout the quarter, it has actually driven more volume and interest in local assets.
In spite of continuous geopolitical stress and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate strength, maintaining positive development momentum in current years. While disputes in the wider region and global economic uncertainty remain a structural restriction, GCC countries have so far restricted their impact on domestic financial efficiency through strong fiscal positions, policy connection, and sustained financial investment.
The World Bank, on the other hand, projects 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF likewise sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift towards more positive overall conditions.
How AI Shift Will Fuel Growth?The IMF's World Economic Outlook (October 2025) jobs global development relieving 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 position the region 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 relatively high-growth pocketprovided that regional threat conditions remain consisted of and reform momentum holds.
Data from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to increase as federal governments broaden financial investment in services, facilities, and technology. 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, enhancing credit conditions, and rising financial investment in technology and AI-related infrastructure.
Public-sector investment and reform stay central to sustaining this pattern. Policy measures intended at bring in foreign direct financial investment, easing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are expected to play a supportive role in 2026.
3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted 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) jobs worldwide development easing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would place the region 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 relatively high-growth pocketprovided that local danger conditions stay 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 continued to increase as governments broaden 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 financial investment and reform remain central to sustaining this pattern. Policy steps focused on bring in foreign direct financial investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil incomes are expected to play an encouraging function in 2026.
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