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The sector likewise dealt with broader macro headwinds, including a more mindful policy background in China and worldwide risk-off sentiment driven by geopolitical tensions and greater energy costs. Thematic ETFs likewise struggled for the most part, particularly those linked to carbon and high-growth technology, as appraisal pressures and worldwide rate dynamics weighed on performance.
Flows in Q1 2026 were modest and extremely concentrated, reflecting selective allowance rather than broad market involvement. Despite weak performance, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items bring in new capital.
Trading activity stayed constant, with typical 30-day volumes around 33,000 shares, focused in a handful of larger and more liquid ETFs. Many activity appears to have happened in the secondary market, making it possible for financiers to change positions without considerable main productions or redemptions. While recent geopolitical events have led to more financial pressure on GCC nations, the area stays resilient and well capitalized to deal with the scenario.
In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic direct 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 release in April pending a last approval from ADX.
Q1 2026 revealed some development relating to ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC during 2026. While the conflict has actually affected belief and rates throughout the quarter, it has actually driven more volume and interest in local possessions.
In spite of ongoing geopolitical stress and security risks throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have continued to show durability, maintaining favorable growth momentum in the last few years. While conflicts in the broader area and international financial unpredictability remain a structural restraint, GCC nations have up until now restricted their effect on domestic economic performance through strong fiscal positions, policy continuity, and continual investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive overall conditions.
The 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 establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would place the region 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 local threat conditions remain consisted of and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors currently represent more than 73 percent of total GDP, a share that has actually continued to rise as federal governments expand financial 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, improving credit conditions, and increasing investment in technology and AI-related facilities.
Public-sector investment and reform remain main to sustaining this trend. Policy procedures targeted at bring in foreign direct financial investment, easing foreign ownership rules, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the region's direct exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are anticipated 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 likewise sees momentum improving, with GCC output growth predicted to increase from 1.7 percent in 2024 to 3.3 percent usually in 2025, showing a shift towards more favorable overall conditions.
The IMF's World Economic Outlook (October 2025) projects worldwide growth alleviating 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 comparison, 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, reinforcing the GCC's status as a fairly high-growth pocketprovided that local threat conditions stay included and reform momentum holds.
Data from the GCC Statistical Center show that non-oil sectors currently 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 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.
Strategic Tips for Navigating the Regional LandscapePublic-sector financial investment and reform remain main to sustaining this trend. Policy procedures focused on bring in foreign direct financial investment, reducing foreign ownership guidelines, expanding capital markets, and supporting private-sector involvement continue to underpin non-oil growth and minimize the region's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil incomes are expected to play a supportive role in 2026.
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