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The sector likewise faced broader macro headwinds, consisting of a more mindful policy background in China and worldwide risk-off belief driven by geopolitical tensions and higher energy prices. Thematic ETFs Struggled for the a lot of part, particularly those connected to carbon and high-growth technology, as appraisal pressures and global rate dynamics weighed on performance.
Circulations in Q1 2026 were modest and extremely focused, showing selective allotment rather than broad market participation. Despite weak efficiency, ETFs taped $27.1 million in net inflows, with just a little number of products drawing in new capital.
Trading activity remained steady, with average 30-day volumes around 33,000 shares, focused in a handful of bigger and more liquid ETFs. Many activity appears to have actually occurred in the secondary market, making it possible for investors to adjust positions without significant main productions or redemptions. While current geopolitical occasions have actually led to more monetary pressure on GCC nations, the region remains resistant and well capitalized to handle the circumstance.
In January, Boreas released its S&P Global Luxury UCITS ETF, adding a niche thematic exposure focused on worldwide luxury and consumer 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 anticipated to launch in April pending a last approval from ADX.
Q1 2026 revealed some progress relating to ETFs in the GCC. We expect more international and thematic ETFs to list in the GCC throughout 2026. While the dispute has actually impacted sentiment and costs during the quarter, it has actually driven more volume and interest in local assets.
Regardless of ongoing geopolitical stress and security dangers across the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to demonstrate durability, preserving favorable development momentum over the last few years. While conflicts in the broader area and international financial uncertainty stay a structural constraint, GCC countries have up until now restricted their influence on domestic financial efficiency through strong financial positions, policy continuity, and continual financial investment.
3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) tasks international development reducing to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, 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 fairly high-growth pocketprovided that local danger conditions remain contained and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to increase as governments broaden investment in services, facilities, and innovation. 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, improving credit conditions, and rising investment in innovation and AI-related facilities.
Public-sector investment and reform stay main to sustaining this pattern. Policy measures intended at drawing in foreign direct investment, relieving foreign ownership guidelines, broadening capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are expected to play an encouraging role in 2026.
The World Bank, on the other hand, tasks 3.2 percent development in 2025, speeding up to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, reflecting a shift toward more positive total conditions.
The IMF's World Economic Outlook (October 2025) jobs worldwide development easing to 3.1 percent in 2026, with sophisticated 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 position the region materially ahead of the world average and somewhat above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a relatively high-growth pocketprovided that local threat conditions remain contained 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 actually continued to increase as governments broaden financial investment in services, facilities, 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, enhancing credit conditions, and increasing financial investment in innovation and AI-related infrastructure.
Reviewing New GCC Data for Strategic InsightsPublic-sector financial investment and reform remain central to sustaining this trend. Policy procedures aimed at drawing in foreign direct financial investment, relieving foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and reduce the area's exposure to oil cost volatility. While hydrocarbons no longer control the growth outlook, oil revenues are expected to play an encouraging role in 2026.
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