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The sector likewise faced wider macro headwinds, including a more cautious policy background in China and worldwide risk-off belief driven by geopolitical stress and higher energy prices. Thematic ETFs Struggled for the a lot of part, particularly those linked to carbon and high-growth innovation, as assessment pressures and worldwide rate characteristics weighed on performance.
Circulations in Q1 2026 were modest and extremely concentrated, showing selective allotment rather than broad market participation. In spite of weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a little number of products drawing in new capital.
Trading activity remained consistent, with average 30-day volumes around 33,000 shares, concentrated in a handful of bigger 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 primary creations or redemptions. While current geopolitical occasions have resulted in more monetary pressure on GCC countries, the area remains resistant and well capitalized to handle the circumstance.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a specific niche thematic direct 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 expected to release in April pending a final approval from ADX.
Q1 2026 showed some progress associating with ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC during 2026. While the dispute has actually affected belief and rates throughout the quarter, it has actually driven more volume and interest in regional possessions.
In spite of ongoing geopolitical tensions and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to show durability, maintaining positive development momentum recently. While conflicts in the wider area and worldwide economic unpredictability stay a structural restraint, GCC nations have actually so far restricted 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 development in 2025, accelerating to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift toward more favorable general conditions.
How to Maintain a Competitive Edge in 2026The IMF's World Economic Outlook (October 2025) projects international growth reducing 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 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 relatively high-growth pocketprovided that local danger conditions remain contained and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has actually continued to increase as 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, enhancing credit conditions, and increasing financial investment in innovation and AI-related infrastructure.
Public-sector investment and reform remain main to sustaining this trend. Policy procedures focused on drawing in foreign direct financial investment, alleviating foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's direct exposure to oil price volatility. While hydrocarbons no longer control the growth 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, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable general conditions.
The IMF's World Economic Outlook (October 2025) projects international development relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position 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 consisted of and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to increase as 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 increasing financial investment in technology and AI-related facilities.
Public-sector financial investment and reform remain main to sustaining this trend. Policy steps intended at drawing in foreign direct investment, relieving foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the region's exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are anticipated to play an encouraging role in 2026.
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