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The sector likewise faced more comprehensive macro headwinds, consisting of a more cautious policy background in China and global risk-off belief driven by geopolitical stress and greater energy prices. Thematic ETFs likewise struggled for the many part, especially those connected to carbon and high-growth technology, as evaluation pressures and international rate characteristics weighed on efficiency.
Circulations in Q1 2026 were modest and highly focused, reflecting selective allowance rather than broad market involvement. Despite weak performance, ETFs recorded $27.1 million in net inflows, with just a little number of products attracting brand-new capital.
Trading activity remained consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of bigger and more liquid ETFs. Many activity appears to have actually taken place in the secondary market, enabling investors to change positions without significant primary creations or redemptions. While current geopolitical occasions have actually resulted in more monetary pressure on GCC countries, the region remains resilient and well capitalized to handle the scenario.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure focused on global luxury and customer brands. ETFs by the CMA for cross-listing on 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 impacted belief and prices throughout the quarter, it has driven more volume and interest in local properties.
Despite ongoing geopolitical stress and security threats across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate resilience, maintaining positive development momentum recently. While conflicts in the broader area and international economic uncertainty stay a structural restraint, GCC countries have up until now limited their impact on domestic financial efficiency through strong fiscal positions, policy continuity, and continual investment.
3.2 percent growth in 2025, accelerating 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 towards more positive total conditions.
The IMF's World Economic Outlook (October 2025) tasks international development reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that contrast, a 4.44.5 percent GCC expansion would position the area 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 regional danger 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 total GDP, a share that has actually continued to increase as governments broaden investment in services, facilities, 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 increasing financial investment in innovation and AI-related facilities.
Public-sector investment and reform stay central to sustaining this trend. Policy measures aimed at bring in foreign direct investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and decrease the area's exposure to oil price volatility. While hydrocarbons no longer control the development outlook, oil incomes are expected to play an encouraging 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 rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects global growth alleviating to 3.1 percent in 2026, with innovative 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 slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that local risk conditions remain contained and reform momentum holds.
Data 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 federal governments broaden investment in services, infrastructure, 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, enhancing credit conditions, and increasing financial investment in technology and AI-related facilities.
Key Steps for Operational Excellence in the GCCPublic-sector financial investment and reform remain central to sustaining this trend. Policy steps focused on attracting foreign direct investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil expansion and decrease the region's direct exposure to oil cost volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play a helpful function in 2026.
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