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The sector likewise dealt with broader macro headwinds, including a more mindful policy backdrop in China and global risk-off belief driven by geopolitical stress and greater energy rates. Thematic ETFs Struggled for the many part, especially those linked to carbon and high-growth technology, as evaluation pressures and worldwide rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and highly concentrated, reflecting selective allocation rather than broad market involvement. In spite of weak efficiency, ETFs recorded $27.1 million in net inflows, with just a little number of items drawing in brand-new capital.
Trading activity stayed consistent, with typical 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 occurred in the secondary market, enabling investors to adjust positions without significant main creations or redemptions. While current geopolitical occasions have actually led to more monetary pressure on GCC countries, the area remains durable and well capitalized to handle the scenario.
In January, Boreas launched its S&P Global High-end UCITS ETF, including a niche thematic exposure concentrated on global luxury and consumer brand names. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are anticipated to release in April pending a last approval from ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We anticipate more international and thematic ETFs to list in the GCC throughout 2026. While the conflict has actually affected belief and prices throughout the quarter, it has driven more volume and interest in regional assets.
Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, maintaining favorable growth momentum in recent years. While conflicts in the larger area and worldwide financial unpredictability remain a structural constraint, GCC nations have actually up until now limited their influence on domestic economic efficiency through strong fiscal positions, policy continuity, and continual investment.
The World Bank, on the other hand, jobs 3.2 percent growth 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 usually in 2025, reflecting a shift toward more positive overall conditions.
The IMF's World Economic Outlook (October 2025) tasks international growth relieving 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 contrast, a 4.44.5 percent GCC expansion would put 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 relatively high-growth pocketprovided that regional danger 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 overall GDP, a share that has continued to rise as federal governments broaden financial investment in services, infrastructure, 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 financial investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain central to sustaining this pattern. Policy measures targeted at bring in foreign direct financial investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and lower the area's exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil earnings are expected to play a helpful function in 2026.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development predicted 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) jobs global development reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, 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, strengthening the GCC's status as a reasonably high-growth pocketprovided that regional threat conditions remain included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has continued to rise as governments broaden investment in services, infrastructure, 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 investment in technology and AI-related facilities.
The Shift From Standard Shared Providers to Intelligent HubsPublic-sector financial investment and reform stay central to sustaining this pattern. Policy measures targeted at bring in foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the region's direct exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil revenues are anticipated to play a helpful role in 2026.
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