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The sector likewise faced wider macro headwinds, consisting of a more careful policy background in China and worldwide risk-off sentiment driven by geopolitical stress and higher energy prices. Thematic ETFs also had a hard time for the many part, especially those connected to carbon and high-growth innovation, as appraisal pressures and worldwide rate characteristics weighed on efficiency.
Flows in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market participation. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with only a small number of products attracting new capital.
Trading activity remained stable, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. A lot of activity appears to have happened in the secondary market, allowing investors to adjust positions without significant main creations or redemptions. While current geopolitical events have actually led to more monetary pressure on GCC nations, the region stays durable and well capitalized to deal with the situation.
In January, Boreas launched its S&P Global High-end UCITS ETF, adding a niche thematic exposure focused on global luxury and consumer brands. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some progress connecting to ETFs in the GCC. We expect more worldwide and thematic ETFs to list in the GCC during 2026. While the conflict has actually impacted sentiment and costs during the quarter, it has driven more volume and interest in local possessions.
Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, keeping favorable development momentum in recent years. While conflicts in the broader area and worldwide financial unpredictability remain a structural restraint, GCC countries have actually so far limited their effect on domestic financial performance through strong fiscal positions, policy continuity, and sustained financial investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. 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 favorable total conditions.
Guaranteeing Compliance Amidst Rapid Regulatory Changes in OmanThe IMF's World Economic Outlook (October 2025) tasks 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 place 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 reasonably high-growth pocketprovided that regional threat conditions remain contained and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently account for more than 73 percent of overall GDP, a share that has actually continued to increase as federal governments broaden investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity across the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and rising investment in technology and AI-related facilities.
Public-sector investment and reform remain central to sustaining this trend. Policy steps aimed at drawing in foreign direct financial investment, reducing foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and minimize the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil profits are expected to play a helpful function in 2026.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output development predicted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable total conditions.
The IMF's World Economic Outlook (October 2025) jobs international growth 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 put 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 fairly high-growth pocketprovided that regional danger conditions remain included 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 federal governments expand financial investment in services, infrastructure, 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 rising financial investment in technology and AI-related infrastructure.
Public-sector investment and reform stay main to sustaining this pattern. Policy measures focused on attracting foreign direct investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the development outlook, oil revenues are anticipated to play a supportive role in 2026.
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