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The sector likewise faced more comprehensive macro headwinds, consisting of a more mindful 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 most part, particularly those connected to carbon and high-growth innovation, as valuation pressures and worldwide rate dynamics weighed on efficiency.
Flows in Q1 2026 were modest and extremely concentrated, showing selective allotment rather than broad market participation. In spite of weak efficiency, ETFs taped $27.1 million in net inflows, with only a small number of items bring in 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. Most activity appears to have taken location in the secondary market, allowing financiers to adjust positions without considerable main developments or redemptions.
In January, Boreas launched its S&P Global Luxury UCITS ETF, adding a niche thematic exposure focused on global high-end and consumer brand names. ETFs by the CMA for cross-listing on ADX.
Q1 2026 revealed some development connecting to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected belief and prices throughout the quarter, it has actually driven more volume and interest in regional properties.
Regardless of ongoing geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show resilience, keeping positive growth momentum in recent years. While disputes in the wider area and worldwide economic uncertainty stay a structural restriction, GCC countries have actually so far limited their impact on domestic financial performance through strong fiscal positions, policy connection, and sustained investment.
The World Bank, on the other hand, projects 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF similarly sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent typically in 2025, showing a shift toward more favorable overall conditions.
Checking Out New Company Frontiers Beyond Riyadh and JeddahThe IMF's World Economic Outlook (October 2025) tasks international development 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 comparison, a 4.44.5 percent GCC expansion would put the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that regional risk conditions stay consisted of and reform momentum holds.
Data 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 federal governments broaden financial investment in services, infrastructure, and innovation. 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, improving credit conditions, and increasing investment in innovation and AI-related facilities.
Public-sector financial investment and reform remain central to sustaining this pattern. Policy procedures focused on 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 direct exposure to oil cost volatility. While hydrocarbons no longer dominate the development outlook, oil profits are anticipated to play an encouraging 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 likewise sees momentum improving, with GCC output growth predicted to rise from 1.7 percent in 2024 to 3.3 percent usually in 2025, reflecting a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) tasks worldwide development alleviating 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 reasonably high-growth pocketprovided that local risk conditions remain included and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to rise 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, improving credit conditions, and increasing investment in innovation and AI-related facilities.
Public-sector investment and reform remain main to sustaining this pattern. Policy procedures targeted at drawing in foreign direct financial investment, easing foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and lower the area's direct exposure to oil price volatility. While hydrocarbons no longer dominate the development outlook, oil incomes are anticipated to play a helpful role in 2026.
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